All Pakistan Textile Mills Association (APTMA) has expressed concern over the 2 percent hike in tax introduced in the Budget for fiscal year 2013-14, which may lead to increase in the cost of production for the textile industry of the country.
Anisul Haq, spokesperson of APTMA, said the 2013-14 Budget announced by Finance Minister Ishaq Dar includes a 2 percent hike in tax on supplies to textile firms that are unregistered with the Government. The measures announced in the Budget will lead to fake registrations and invoices, he added.
As per its pre-Budget discussions, the FBR was planning to eliminate the difference in tax amount between supplies to registered and unregistered textile firms. But, the announced Budget plan does not follow the same.
The APTMA spokesperson said the Pakistani textile industry is already bearing a loss of about 50 percent in its production capacity due to shortage in gas and electricity supply, and the new tax measures will further add to its worries.
He further said the allowance for initial depreciation for plant and machinery in the Pakistani textile industry has reduced from 50 percent to 25 percent, which may cut down investments in the industry, necessary for economic growth in Pakistan.
The Budget for 2013-14 also has provision for legal support to the Center for Research on Economic and Social Transformation (CREST) for verification of input tax of the textile industry supply chain in Pakistan.