Home / Knowledge / News / Textiles / Pakistan garment sector unhappy with high raw material tax
Pakistan garment sector unhappy with high raw material tax
17
Oct '13
The heavy duty on import of textile raw material in Pakistan forces garment makers to use cotton as the core input, said Jawwad A Chaudhry, the newly elected senior vice chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) upon assuming charge.
 
The PRGMEA senior vice chairman said Bangladesh, which produces no cotton, allows duty-free import of all kind of raw material, which has pushed its value-added textile exports to US$ 26 billion, while Pakistan has yet not been able to cross US$ 4.5 billion.
 
Mr. Chaudhary said, so far Pakistan mainly produces only Generation I and II garments, as production of Generation III and IV garments remain to be a challenge in the wake of raw material constraints.
 
The Pakistani apparel industry comprises of small and medium size enterprises, which produce high-end fashion products, however, unfriendly import policies restrain these producers from utilizing their full potential.
 
The retiring PRGMEA central chairman Sajid Saleem Minhas said allowing duty-free import of  synthetic blends and cotton fabrics, which Pakistan does not produce at present, can boost country’s apparel and sportswear exports by two-fold.
 
Mr. Minhas said import of small trims, having no commercial value, should also be made duty-free, so as to avoid any delays. 
 
Low import duties would enhance the competitiveness of Pakistani textile products under the EU GSP, he added.
 
Further expressing disappointment over delay in clearance of refund claims of textile and garment entrepreneurs by the Federal Bureau of Revenue (FBR), Mr. Minhas said that since February 2013, no firm has received refund of two percent sales tax on raw material purchase for export orders. 
 
Besides, billions of rupees of the value-added textile industry are even trapped in unpaid refund claims of 2010, he added.
 

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search