Title: Impact of Taxation System on Financial Performance of Textile Sector in Pakistan

Thank you for your interest in taking part in our research study investigating the correlation between
Taxation System and Performance of Textile Sector in Pakistan. Your valuable inputs will play a significant
role in enhancing our understanding of this essential topic. Kindly respond to the following questions by
choosing the most suitable option on a Likert scale, ranging from 1 (Strongly Disagree) to 5 (Strongly
Agree).

Performance of Textile Sector (Dependent Variable):

1. The textile industry has significantly contributed to the development of Pakistan's

economy through job creation and foreign trade earnings, even during times of
global economic crises.

Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree

2. The inadequate research and development (R&D) efforts in Pakistan's cotton sector
have contributed to lower cotton quality compared to other Asian regions.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3. Does the textile industry in Pakistan offering opportunities for unskilled labor and
exhibiting potential for expansion.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

4. Do you believe that the Pakistan Textile Industry has the potential to enhance its
production and exports, requiring investments in machinery, technology, worker
training, labor productivity?

 Strongly Disagree
 Disagree
  Neutral
 Agree
 Strongly Agree

5. Is global financial crisis has negatively impacted the textile industry, leading to
challenges like unemployment, energy crisis, high taxes

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

Tax Rates (Independent Variable):

1) Industries avoid paying taxes that they legally owe in Pakistan has been considerably
overstated by the Federal Board of Revenue (FBR)?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2) The substantial burden of both direct and indirect taxes, along with the high tax
rates, is having a detrimental impact on the textile sector, resulting in increased costs
of goods and reduced purchasing power for consumers?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

3) Tax morale is highest in major industrialized population centers that serve as

government seats.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree
 4) Income tax negatively affects investment in the country
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

5) Both consumption and investment, considered major economic activities, exhibit

negative responses to taxes, leading to an overall negative impact on GDP.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

Tax Incentives and Exemptions (Independent Variable):

Tax incentives are essential to attract new investors and that enhancing the stability of the tax
environment contributes to the growth of the industry?

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

1. Pakistan textile sector is actively pursuing taxation incentives as part of a

comprehensive strategy.

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

2. Income Tax Ordinance, 2001, which is the local tax law, includes provisions for tax
exemptions, reduced tax rates for industries?.

 Strongly Disagree
  Disagree
 Neutral
 Agree
 Strongly Agree

3. tax incentives do not have a substitution effect on production and investment

decisions?.
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

Due to the significance of the textile sector in Pakistan, there is a requirement for
substantial alterations in tax incentive policies
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

Import and Export Duties (Independent Variable):

4. In Pakistan rationalization of duties and taxes has been implemented to reduce cost
of imported materials, machinery, equipment, investment, capacity expansion, and
various consumer goods

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

1. Due to long term financing facility (LTFF) on import of plant and machinery for textile sector have
huge impact on industrial growth

 Strongly Disagree
  Disagree
 Neutral
 Agree
 Strongly Agree

2. In budget 2021-22 Additional Customs Duty (ACD) on 2436 Tariff Lines (TLs) of 20% CD Slab have
been reduced from 7% to 6% which also includes raw materials which will reduce the cost of
production

 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

when a large country imposes a ban or a tax on exports, it leads to a decrease in the
domestic price of the taxed commodity, an increase in the international price, and a
reduction in the volume of trade
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

does an export tax improve a country's termsof-

trade
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

Control Variables:

I. Project Size: Please indicate the size of the project using a scale from 1 (Small) to 5
(Large).
II. Project Complexity: Please assess the complexity of the project using a scale from 1
(Low) to 5 (High).
III. Geographical Location: Please rate the geographical location of the project on a
scale from 1 (Local) to 5 (International).