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Aptma demands zero-rating facility for machinery imports

Aptma demands zero-rating facility for machinery imports

LAHORE: The All Pakistan Textile Mills Association (Aptma) urged the caretaker government on Tuesday to immediately notify zero rating facility of sales tax on import of machinery.

The request from the textile association came as 200 containers are stranded at customs ports and incurring unjust demurrages.

“The facility had expired on June 30 and the machinery imported for BMR and investment in Greenfield projects are stranded at the customs ports. Issuance of the SRO has already been approved by the outgoing cabinet and only notification of the same is pending, which require immediate action by the present interim set up,” Aptma Chairman Aamir Fayyaz Sheikh said in a press release.

He said the government had extended zero rating facility of sales tax on machinery, not manufactured locally, if imported by the textile industrial units registered with Ministry of Textile Industry, as specified in part IV of 5th schedule to the Customs Act 1959, subject to same conditions as specified therein, at zero per cent sales tax, effective from Jan 16, 2017 until June 30, 2018.

According to him, importers are awaiting for issuance of the SRO to avail the incentive terms of the duty and sales tax free import of machinery.

“The SRO should have been issued by the previous government, or immediately after by the interim government, enabling the industry to install machinery for upgrading and further production,” he added.

The Aptma chief urged the Federal Minister for Finance as well as the minister for Commerce (Textile Division) to take stock of the situation and issue the SRO without further delay.