In its budget proposals, the All Pakistan Textile Mills Association (APTMA) has demanded scrapping the 1 percent withholding tax imposed on imports of textile machinery, raw materials, spares and chemicals.
APTMA has also requested the government to reduce the maximum corporate tax to 25 percent to attract foreign investments into the country and also requested it not to review the minimum tax, which was scrapped in the previous budget.
With regards to imports of PSF, APTMA has requested for a reduction in duty along with other fibres like viscose and acrylic in view of the fact that there is a shortage as well they are not available at international competitive rates in local markets.
It has also requested for the zero rating with respect to sales tax to be continued since nearly 85 percent of cotton or manmade textiles across the whole value chain are exported in one form or the other.
With concern to duty drawbacks, APTMA has urged the government to allow duty drawback on yarn at 3 to 5 per cent and Greige Fabric at 4.5 per cent of the turn over value to the downstream sector on cascading basis.
The Pakistani textile sector is going through very depressing times in the last few years and more so since the global economic crisis unfolded a few months ago. Textile exports dipped by nearly 6 percent in the first nine months of the current fiscal.
Fibre2fashion News Desk - India
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