Budget Cuts Facility for Export-Oriented Sectors
Islamabad: A media source has revealed that, with Budget 2019-20, the govt has chosen to stop the zero-rating facility for the five export-oriented industries.
These include fabrics, tapestries, sports goods and surgical equipment. These industries will now bear imposed 17% sales tax.
During his budget address, Revenue Minister Hammad Azhar said the center was aimed at solving delays in payment transactions. Zero-rating, however, has developed a gap, and unintended beneficiaries profited with this.
The govt has promised quick payment claims for actual exports instead of zero ratings. Sales tax refunds will be streamlined for these industries. The sales tax earned on inputs will be refunded instantly.
Incremental revenue, through adjustment of the GST level in different fields and the elimination of zero rates, is expected to increase PKL 250 billion from sales taxes.