Pakistan has to pay Rs. 200 bn as pending textile sector refunds, according to Zubair Motiwalla, Chairman counsel of All Pakistan Textile Association, who recently briefed the senate standing committee on finance, revenue and economic affairs. He said kids’ fabrics are being imported from abroad and smuggling and under-invoicing should be stopped.

Textile manufacturers are already paying 16 different taxes, but 17 per cent additional sales tax was imposed on the industry in the Finance Bill 2019, Motiwalla said. He said the country’s cotton production has reduced from 14 mn bales to 10 mn bales.

The senate committee recently reviewed the Finance Bill 2019 as well as the clauses proposed by the representatives of different industrial sectors. The senate members also proposed changing several clauses in the Customs Act 1969 and the Sales Tax Act 1990.