The ongoing reduction in tax charges on raw materials is expected to boost Pakistan’s textile exports by $5 billion in the next fiscal year. In the previous two years, according to Robina Ather, chairman of the National Tariff Commission (NTC), considerable assistance has been granted to different export industries, including textiles. Over 2,000 tariff lines have been lowered to zero thus far.
She went on to say that tax charges on all raw commodities had been considerably lowered. She stated that textile exports are expected to grow by $4-5 billion next year.
She made these statements during a meeting of the Senate Standing Committee on Finance, Revenue, and Economic Affairs, which was convened to discuss and approve recommendations on the Fiscal Bill of 2021. Senator Muhammad Talha Mehmood presided over the meeting, which took place at Parliament House on Thursday. Various aspects of the Finance Bill 2021-2022 were addressed in depth at the meeting.
The government has agreed to eliminate the tax on the import of point-of-sale equipment, according to the FBR. Duty-free machines will be allowed to be imported into large retail shops. The FBR also announced that the import tariff on credit/debit card reader machines has been eliminated. The Committee was against the decision to remove Madaraba’s income tax exemption.
The HRC is not produced in our nation, according to the head of the NTC. Currently, the regulatory tax on HRC has been lowered from 12.5% to 5%.