Council of All Pakistan Textile Mills Associations and Pakistan Apparel Forum has urged its government to revive zero-rated sales-tax regime and reinstate SRO 1125 in its true spirit to address the industries’ liquidity problems. The associations also submitted their proposals for a relief package to demand government’s support and relief for textile industries in the covid-19 situation. They said that hardships of exporters in terms of liquidity would multiply in the presence of 17 percent sales tax.

Thus, restoration of zero-rating or exemption from sales tax was crucial, for which SRO 1125 should be revived in true spirit. Under current circumstances, the local markets were closed, the intention of the government to collect sales tax was not being achieved, and by continuing to collect 17 percent sales tax, the government was creating severe liquidity problems for the exporters.