KARACHI, Oct 14: Textile industry seeks some tax relief against their huge investments made in the recent past as well as for future expansion of the industry so that further investment was attracted.

In a letter addressed to Commerce Minister Humayun Akhtar Khan, the former chairman, Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmed said that one method through which this objective could be achieved was that exporters should be allowed to claim tax benefit of the depreciation and interest costs incurred by them for BMR against their tax liabilities.

He said that other approach could be to reduce the prevailing final tax regime (FTR) rates to 0.25 per cent. Presently, exporters are assessed on the basis of FTR, under which tax deducted at source from export proceeds is the full and final discharge of tax liability, he said.

Shabir Ahmed said this means that they are being denied any benefit for the additional investment being made by them. In view of special circumstances that are prevailing for the textile exporters at present, he said it is proposed that they should be allowed some relief towards their tax liability to enable them to fare better in the post quota era.

He said that the provision of fiscal space in the manner proposed should be for at least five years and only then it will help provide conducive environment for investment in the country. In turn this will add to national exchequer more revenue and higher foreign exchange as well as generate more employment.