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APCPA demands GST exemption, 0.1pc IT on turnover

RECORDER REPORT

FAISALABAD: The Member, Sales Tax, of Central Board of Revenue, Sarfraz Ahmad Khan, has said that the chapter of fixed tax has been closed for ever and general sales tax (GST) is to be levied after taking into confidence all sectors of trade and business, including powerlooms owners.

Talking to members of All Pakistan Cotton Powerlooms Association (Apcpa) at the Collectorate of Sales Tax, Faisalabad, he reviewed the problems of powerloom industry and said: "We are evolving a workable plan on GST implementation and comprehensive report is under preparation, which will submitted to the government shortly."

The Apcpa chairman, Rana Ikhlaq Ahmad,who was leading the powerlooms owners, said that powerloom industry is in a severe crisis and cannot sustain the burden of additional taxes. He said that the levy of GST at source is not feasible as powerloom owners are not literate and cannot maintain documentation.

Ikhlaq said that powerloom industry, which is not only labour intensive but also export-oriented, should be exempted from GST in the best interests of national economy and income tax should be reduced to the level of 0.1 percent on turnover as the prevailing GP rate is exorbitant.

The meeting was attended by Raiz Ahmad Malik CBR co-ordinator on GST, while a former chairman of Apcpa, Mohammed Akram Ghouri, and executive members of Apcpa Rana Faqir Ahmad, Choudhry Abdul Haq, Mehr Taj Mohammed, Riaz Saigal and Malik Abdul Sattar put forward the problems of powerloom industry.