ISLAMABAD, Dec 7: Several issues relating to five zero-rated sectors of textile, leather, carpets, surgical goods, sports and the proposed RGST were extensively deliberated upon during a meeting of the sub-committee of National Assembly Standing Committee on Finance and Revenue, held at the Federal Board of Revenue here on Tuesday.

There was a consensus that exports of the five sectors should remain zero-rated whereas domestic sales need to be taxed. The sub-committee appreciated the concerns of textile associations and the need for facilitating the sector since it represented a major share of Pakistan’s exports.

Shahnaz Wazir Ali, Special Advisor to the Prime Minister, chaired the meeting which was attended by MNAs Kashmala Tariq and Rashid Godil, Aptma chairman Gohar Ejaz, Capta chairman Zubair Motiwala, and representatives of several textile sector associations, FBR chairman Sohail Ahmad and other officials.

The associations presented their point of view and requested that zero-rating should continue under the existing sales tax regime because its removal would cause liquidity issue for these sectors.

They requested that intermediary stages should not be taxed and some other mechanism may be devised to collect taxes on domestic sales of these sectors, preferably at the retail stage.

The sub-committee will continue its discussions with representatives of these sectors at the next meeting scheduled on Dec 11.

MNA Shahnaz Wazir Ali asked the FBR and representatives of the associations to present firm proposals during the next meeting to help the sub-committee firm up its views on how exports of these sectors could be facilitated and how local consumption be brought into the tax.