The Federation of United Garments Forums states that due to the government’s suspension of refunds of previously charged VAT on garment exports, a number of crises have arisen in the garment export sector.
The Federation of Joint Garment Forums says that until now, VAT has been levied on the import of raw materials such as fabric and thread, and when they are converted into ready-made garments and exported, the government has taken steps to refund the previously charged VAT.
However, the Garment Federation also states that due to the sudden cessation of VAT refunds in exports, there will be a setback in the export sector and the situation will have a severe impact on the economy.