PRGMEA lauds ST issue resolution

LAHORE: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) lauds the Federal Board of Revenue (FBR) for resolving the 5 percent withholding sales tax issue of the export-oriented small and medium enterprises.

PRGMEA regional chairman Sheikh Luqman Amin on Friday said the settlement of the longstanding issue of export-oriented SME sector indicated that the FBR was in favour of the revival of industry and growth, in line with the vision of PM Imran Khan.

The hub of SME sector, Sialkot needed this working capital for smooth operations.

“Special credit goes to Ijaz Khokhar, who along with PRGMEA ex-chairman Sohail Afzal Sheikh, Ch Zulfiqar Hayat and Surgical Exporters Association ex-chairman Zeshan Tariq, approached the FBR and convinced it to grant exemption to the exporters in this regard,” he added.

He said that the issue of 5 percent withholding sales tax on companies arose as a result of amendment in 11th Schedule to the Sales Tax Act through Finance Act 2019. As a result, the regional tax office started issuing notices to the companies by considering purchases at 70 percent of their exports.