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Thursday, March 28, 2024

APTMA demands restoration of viability and zero rating regime for exports of entire value chain

The All Pakistan Textile Mills Association Chairman Tariq Saud has demanded restoration of immediate viability and adoption of proposals for a zero rating regime for exports of the entire textile value chain.

He said burdening of industry with presumptive, innovative and further taxes would not be acceptable to the industry. He said the industry was no more cost effective due to the tax burden. The textile industry exports would remain sluggish unless the end product becomes cost effective.

“The government can tax the products meant for domestic consumption but the exports of value added textile industry should be zero rated both for registered and unregistered buyers for the entire textile value chain.”

He was leading a delegation of the Association on Monday, which called on the ministries concerned in Islamabad ahead of the announcement of budget for the fiscal year 2016-17. The delegation called on the Minister for Petroleum and Natural Resources, Secretary Commerce and Secretary Finance.

The APTMA Chairman has also demanded introduction of 5 percent DLTL for the entire sub sectors of textile value chain to mitigate the incidentals of local taxes, levies and cess.

He also said the turnover tax on textile industry should be reduced  to 0.25 percent from existing one percent.

He further said both the GIDC and electricity surcharge should be withdrawn immediately to make the industry competitive regionally.

He said the add-on of the RLNG should be reduced in order to boost its consumption and attracting fresh investment to the sector.

“The SNGPL was charging 10 percent UFG for RLNG and 4.5 percent for gas while the actual industry UFG was even less than 4 percent,” he said.

He urged the minister to revise the UFG in between 4% to 4.5% on textile industry.

He has also demanded the government to allow the release of 35000 bales of cotton stranded at the Wagha border.

He further sought withdrawal of 5% sales tax and 3% customs duty on cotton import.

He also demanded 15 percent Regulatory Duty on subsidised, under-invoiced and misdeclared import of yarn and fabric in domestic commerce.

The Secretary Finance has assured the APTMA delegation of considering its proposals in the upcoming budget while the Secretary Commerce said the government would allow import of 300,000 bales of cotton to meet textile industry demand.

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