Daily Times

KARACHI: The government must immediately remove four percent Customs duty and five percent sales tax on the import of cotton, which would enable the spinning industry function properly. The All Pakistan Textile Mills Association (APTMA) has said that free trade in cotton would serve the interests of all segments of the textile chain and also protect the interests of the growers. APTMA Chairman Tariq Saud lamented that the Indian mills were dumping cotton yarn into Pakistan, adding that the government must protect the rights of genuine value added exporters, who could utilise the facility of Duty and Tax Remission Scheme (DTRE) to carry on their businesses unhindered. He said that import for re-export DTRE has also shown a remarkable rise, increasing by over 800 percent, for which we have no protection. High cost of doing business and tariff subsidy to yarn exporters of India has also crippled Pakistan textile industry, especially spinning and weaving industry, he added. The APTMA chief urged the government to address the issue of high cost of doing business and immediately remove four percent Customs duty and five percent sales tax on the import of cotton, which would enable the spinning industry function properly instead of being crippled further by removal of regulatory duty. “Pakistan being a key player in cotton needs to remain in line with the international market situation and it is imperative that the stability is maintained so that the entire chain can work seamlessly. The downstream sector should appreciate Pakistani mills for their commitment as they cannot rely on the Indian mills who have backed out of their contracts due to rise in cotton prices,” he said, indicating that the export of cotton yarn has drastically declined by 32 percent during the first 11 months of 2015-16, as compared to the corresponding period of the last year, mainly due to non-availability of raw cotton, which was largely due to drastic decline in production of cotton by 35 percent in the country and import duty at the rate four percent and sales tax at five percent on import of cotton.