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    Pakistan Textile And Leather Products Sales Tax Rate Adjustment

    2013/7/31 9:15:00 22

    TextileLeatherExport

    < p > the federal income Commission of Pakistan announced last Friday that the sales tax rate of domestic a target= "_blank" href= "http://www.91se91.com/" > strong > leather < /strong > /a > products and a a "a" is less than 5%. This adjustment can be traced back to June 13, 2013.

    In addition, two other notices were released.

    < /p >


    < p > earlier, in the 2013-14 budget, leather and textile related products were included in Annex 3 of Sales Tax Act 1990, so 17% of the retail tax was charged.

    Today, the retail tax rate has been lowered to 5%.

    The notice also mentioned that the sales tax rate of leather and textile intermediate products or raw materials products increased from 5% to 17% in Pakistan's 5 duty free zones (export enterprises gathering points).

    It is reported that FBR thinks that tax reduction is only applicable to export enterprises, so if these products are sold outside the 5 major duty free zones, the tax should be levied according to the normal standard.

    < /p >


    < p > it is understood that in the first 3 quarters of 2012~2013 fiscal year (July 2012 ~2013 March), Pakistan's leather exports amounted to US $417 million, up 2.22% from the 408 million US dollars in the first 3 quarters of the financial year of 2011~2012.

    Among them, leather < a target= "_blank" href= "http://www.91se91.com/" > strong > dress < /strong > /a > exports increased from 263 million US dollars to 8.51% US dollars; leather gloves exports decreased from 7.18% to 123 million US dollars from 132 million US dollars; other leather products exports decreased from 12 million 604 thousand US dollars to 8 million 779 thousand US dollars.

    In March 2013, the price of $48 million 776 thousand was increased by 45%, compared with $33 million 713 thousand in March 2012.

    < /p >


    < p > Pakistan textile industry is the largest industry in China, accounting for 46% of the manufacturing industry, and the manufacturing industry accounts for 40% of the total employment rate, accounting for 30% of the total employment rate and 8.5% of the gross national product.

    At the same time, Pakistan is also the fourth largest cotton producing country in the world. Its spinning capacity accounts for 5% of the world's total capacity and is the third largest textile industry country in Asia.

    Pakistan has 8 million 800 thousand spinning spans, and its cotton textile industry has 458 departments, of which 50 are blended, 408 are pure spinning.

    < /p >


    < p > textile industry also plays a decisive role in foreign trade. Exports account for about 60% of the total export volume. Its cotton and textile semi-finished yarn and cotton cloth occupy a certain share in the world textile trade.

    At present, the United States levying a 23% tariff on textiles exported to Pakistan, but Pakistan exports US $3 billion annually to textiles, mainly knitted shirts, sheets, quilts, gloves and towels.

    In the 13 fiscal year, the textile industry was quite good, because the price of cotton was stable. In addition, the demand for yarn and grey fabric in China was strong, and the textile industry's profit was increased.

    < /p >


    In the financial year of < p > 2013, Pakistan's exports of US $13 billion of textile products increased by 5.9% compared with the same period last year, up 14.7% from the US dollar.

    To a large extent, the country's export growth owes to China. China encourages textiles to import more yarns and grey fabrics.

    Because of these factors, the profitability of textile Sample Firms has increased by four times to 22 billion 800 million rupees, compared to 4 billion 400 million rupees last year.

    < /p >


    < p > according to the notice, the same sales tax rate has been applied to commercial importers and manufacturers at the import stage.

    Commercial importers and manufacturers are subject to a 5% sales tax rate in the import process.

    Similarly, the Notice applies to products other than serial numbers 22 and 36 in Annex 3 to the sales tax law 1990 concerning retail textile products and other products ".

    Another notice has been issued to delete the serial numbers 22 and 36 and other related provisions in Annex 3 of the tax act.

    < /p >

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