ISLAMABAD, June 17: Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association has asked the government for withdrawal of various budgetary proposals, as these will adversely affect the industrial, commercial operations of the textile sector.

The association in a letter to finance ministry, a copy of which was made available to Dawn asked for amendments in the Finance Bill 2006 to withdraw these proposals as it would seriously harm the production.

The letter said that under the budgetary proposals, the government empowered commissioner of income tax to allow reduction up to 75pc of the rate of advance tax payable at the import stage for import of raw material for own use by the manufacturer.

This proposal, according to the letter, requires that each manufacturer will have to pay advance tax at the rate of 25pc of the applicable rate, which will unnecessarily bring constraints on the working capital. If the manufacturer compiles with the condition laid down in section 147 of the Income Tax Ordinance 2001 then 100pc reduction in the rate of income tax should be given at the import stage as at present.

It had been proposed to withdraw the proposal that bound every exporter to deduct income tax from payments made for rendering of or providing of service of stitching, dying, printing, embroidery, washing, sizing and weaving. It was also proposed that the existing limit of income of Rs400,000 may be increased to Rs600,000 to give due benefit to the senior citizens.

The association also proposed withdrawal of 5pc excise duty on non-fund services provided by financial sector; the proposed enhance rate of 5pc excise duty should be revised to pre-budget rate of 3pc; the levy of 15pc excise duty on mobile phone should be withdrawn; the 7pc excise duty on retailer service and the 15pc duty on international air travel should be withdrawn.

The amendment in the Sales Tax Act by including financial and operating lease had been included in the definition of supply, which needed to be withdrawn; taking of action under the sales tax act without show-cause notice should be done away with; the proposal of the time limit for filing of revised return and permission in this regard from the collectors should be withdrawn.

The penalty of Rs25,000 for a registered taxpayers, who failed to file summary of sales and purchases should be withdrawn and the levy of 15pc GST should also be withdrawn from computer hardware.