ISLAMABAD: The federal government is considering withdrawing the facility of zero percent sales tax on inputs of five export oriented sectors, including textiles.
Zero percent sales tax had been allowed through the federal budget 2016-17 to address the issue of liquidity faced by export sectors and in anticipation that sales tax refund issue would be addressed once and for all. However, it has been noticed that the position of refunds remains unchanged.
The federal government is also considering withdrawal of rebate allowed on the export of yarn as a part of export package announced in January this year. This is being mulled on demand of value addition sectors.