The budget for the fiscal year 2011-12 (July-June), presented to Parliament on June 4, was a non-event, particularly for the textile sector. There were no relief or incentive for the sector. In fact, there was no mention of textiles anywhere in the budget speech. The only important measure concerning the sector, the withdrawal of zero-rating for sales tax in respect of the five zero-rated sectors of which textiles is one, had been announced in March. The textile sector was not looking forward to any new support measures because the long-term program for the development of the textile industry is set out in the five-year (2009-14) textile policy which is now being implemented. The sector has lately been concentrating on electricity and gas load shedding, high interest rates and the pending refund of sales tax and custom duty drawbacks as well as the promised refunds of local taxes and levies on exports. But the budget does not provide adequate funding for the long awaited payback.
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