PPI Original Text (PPI-OT) – Sales Tax exemption for sizing, weaving and warping sectors and vice versa for several wholesalers – Alfalah Securities Limited

Karachi, June 01, 2012 (PPI-OT): The government has decided to withdraw 5% sales tax and provide zero-rating facility in Budget FY13 to sizing, weaving and warping sectors thus helping these small manufacturers to grow their businesses and sustain in the business community.

According to Alfalah Securities Limited, these sectors comprising mainly of Small and Medium Enterprises (SMEs) includes unregistered power looms and entirely registered yarn manufacturers/importers.

On the other hand, the Federal Board of Revenue (FBR) has withdrawn exemption granted to several wholesalers for payment of minimum 10% sales tax, in a move to bring them back into the tax net and reducing tax fraud to a considerable extent which had caused significant loss to the tax collection body over the years.

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