20000102

Condition of making payment thru cheques opposed

RECORDER REPORT

FAISALABAD: All Pakistan Cotton Powerlooms Association (APCPA) has expressed grave concern over the condition of making payment through cheques for amounts above Rs 50,000 and has expressed apprehension that with imposition of this condition business of Powerloom sector would be closed and nearly one million workers' employment would be endangered.

Commenting on insertion of new clause 73 in Sales Tax Act 1990, APCPA Chairman Rana Ikhlaq Ahmad said that Powerloom sector discharge Sales Tax responsibility at source, when yarn is purchased from the dealers. They cannot afford to go through complicated Sales Tax system.

He said that due to frequent increase in yarn and electricity and double taxation system, the powerloom industry was in severe crisis and more than 60,000 powerlooms closed in the country.

But, the government policy-makers are closing the doors of employment to suit their own purposes. It would have been better, if the textile associations had been taken into confidence before making any decision, but arbitrary decisions are made for tax collection.

Rana Ikhlaq Ahmad said that the main reason for economic crisis, due to bad planning and defective economic policies.

Due to which neither the export can be increased, nor unemployment can be reduced. He said that cheque payment system cannot be successful in our country as chances of fraud increase and even now many cases are pending in courts for bounced cheques. The policy which is being inforced under the garb of Sales Tax would destroy manufacturing and cloth exports.

The APCPA chairman demanded for immediately withdrawal of the condition of making payments through cheques.

In a press statement, Faisalabad Chamber of Commerce and Industry President Shiekh Mohammed Khalid Habib also strongly demanded to withdraw this condition of payment through cheques to save the exports of the country from coming to a standstill.

He said the government was trying to impose sales tax registration on yarn traders and powerloom sector while they were unwilling to be dragged into tax net.

In this tug-of-war the exports especially textiles was the real sufferer, he added.

The chamber president pointed out that textile exports of the country already passing through crucial phase and any disruption in supply line would greatly damage the foreign exchange earning sources.