Commerce Ministry denies restoration of zero-rated on export sectors
Ministry of Commerce has given up the suggestion of the restoration of zero-rated on five export sectors, reported 24News HD TV channel on Friday.
Prime Minister Advisor for Commerce and Investment Abdul Razak Dawood confirmed that the zero-rated could not be restored. He said zero-rated was right at a time but the government wanted to automate the refunds. He said a new textile policy would be issued till mid of July.
Sources said that the commerce ministry had suggested the restoration of zero-rated on five export sectors. The Federal Board of Revenue had expressed reservations on the restoration of zero-rated. The sources said that the IMF Programme was also an obstacle in the restoration of zero-rated. The incumbent government had ended the facility of zero-rated export sectors.
During the federal budget for the fiscal year 2019-20, the government had withdrawn the Statutory Regulatory Order (SRO) 1125(I)/2011, which offered zero-rated sales tax on inputs and products of five major export-oriented sectors including textile, leather, carpets, sports goods and surgical instruments.