The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has put forward its suggestions aimed at keeping a tab on tax frauds and for better sales tax collection in the garment manufacturing sector of Pakistan for the next fiscal year 2013-14.
The proposal, addressed to the Federal Board of Revenue (FBR), says the Pakistani textile and garment exporters who manufacture their own goods should be verified to include under the Zero Rated Tax Regime, as stated in a report by Business Recorder.
There are almost 80 percent of Pakistani textile exporters manufacturing their own goods who may submit details of purchases related to orders from foreign buyers that are exceeding the limit to the tax department. This can help the textile and apparel exporters to be eligible for inclusion in the tax regime.
The proposal further added that a Certificate of Zero Rating can then be issued to the exporters once they provide the details of any exceeding purchase.
If implemented, the Zero Rated Tax Regime will help the Pakistani textile and garment exporters who manufacture their own goods to avail zero rating of taxes for the coming fiscal year 2013-14.