Sep 08, 2018

Tax impacts on Textiles! Featured

In addition to the CESS tax imposed on imported raw materials and threads a 15% VAT is also being charged, putting the country’s textile industry in difficulty, said the Local Textile Manufacturers’ Association.

Currently, a CESS tax of Rs. 100 is charged for every kilo of raw material and thread that is imported.

Further, for every product made of this material and thread, another 10% is charged and in addition a further 15% tax is also imposed.

According to sources in the textile field, it is difficult for the textile manufacturers to bear this tax burden and around a million employees directly or indirectly involved in the field are facing the threat of losing their jobs.

The annual operations of the textile trade is around a billion dollars, it is said.