Textile industry look for issuance of SRO on zero-rated regime

The Finance Minister Ishaq Dar after announcing zero rate regime in the budget on 3rd of June for export oriented industries to boost exports, a long standing demand of the value added textile industry. Textile industry is now waiting for the issuance of Statutory Regulatory Order (SRO) on zero-rate regime for export-oriented industries.

Generally, the government issues any such SRO on the same evening after announcement of the budget, but this time the industry has no idea as when the government would notify it. They have contacted the finance ministry on the issue but they are also clueless so far.

Another industrialist said that the bureaucracy is of the view that since the zero-rate regime would be implemented from the next fiscal, ie on 1st of July therefore the government is not in a hurry to notify it.

The zero-rating facility will be available on purchase of raw materials, intermediate goods and the purchase of energy ie electricity, gas, furnace oil and coal. The retail sales of locally manufactured finished goods of these sectors will continue to be subjected to sales tax at 5 percent.

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