Daily Times

LAHORE: The All Pakistan Textile Mills Association (APTMA) 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.

While leading a delegation of the association on Monday, which called on the ministries concerned in Islamabad ahead of the announcement of the upcoming fiscal year budget 2016-2017, Saud said that burdening the industry with presumptive, innovative and further taxes would not be acceptable.

He said that the textile industry was no more cost effective due to the tax burden adding that the industry’s exports will continue to 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 said.

The APTMA chairman also demanded the introduction of five per cent DLTL for the entire sub sectors of textile value chain to mitigate the incidentals of local taxes, levies and cess. He also expressed his view on turnover tax saying that the tax on textile industry should be reduced from existing one per cent to 0.25 per cent

He said both the Gas Infrastructure Development Cess (GIDC) and electricity surcharge should be withdrawn immediately to make the industry competitive regionally. He said the add-on of the Regasified Liquefied Natural Gas (RLNG) should be reduced in order to boost its consumption and attract fresh investment to the sector.

“The Sui Northern Gas Pipelines Limited (SNGPL) were charging 10 per cent unaccounted for Gas (UFG) for RLNG and 4.5 per cent for gas while the actual industry UFG was even less than four percent,” he said.

He urged the minister to revise the UFG in between four per cent to 4.5 per cent. He has also demanded the government to allow the release of 35,000 bales of cotton stranded at the Wagha border.

He further sought withdrawal of five per cent sales tax and three per cent customs duty on cotton import, demanding 15 per cent Regulatory Duty on subsidised, under-invoiced and misrelated import of yarn and fabric in domestic commerce.

The finance secretary assured the delegation of considering its proposals in the upcoming budget while the commerce secretary said that the government will allow the import of 300,000 bales of cotton to meet the textile industry’s demand.