FAISALABAD: Textile exporters have suggested paying 7.5 per cent sales tax instead of 17 per cent, and warned if 17 per cent sales tax is imposed on the textile sector, it would block their Rs 500 billion refund capital inside the market that would cause a surge in unemployment and sharp drop in exports.
NDO – Vietnam’s textile and garment sector posted a total export revenue of US$11.43 billion in the first four months of this year, a year-on-year increase off 9.56%; however textile and apparel products were exported mainly to traditional markets.
Says this facility must be extended to Mudra and SHGs, too. An expert committee of the Reserve Bank of India (RBI) on Micro, Small and Medium Enterprises (MSMEs) has suggested doubling collateral-free loans for these units.
In the online system, a firm offsets taxes paid on input from the IGST to be paid on export and then applies online for refund. The entire process of receipt of refund takes about two weeks or less.
The Indian rupee opened higher by 14 paise at 69.56 per dollar on Wednesday versus Tuesday's close 69.70.
Experts say the move will delay the process of issuing refunds.