Home / Knowledge / News / Textiles / Pak textile bodies seek tax exemptions in Budget
Pak textile bodies seek tax exemptions in Budget
24
May '16
Ahead of the Budget next month, the All Pakistan Textile Mills Association (Aptma) has called for zero-rated tax regime for the entire textile value chain.

The Pakistan Readymade Garments Manufacturers and Exporters Association, Gloves Manufacturers & Exporters Association, Carpet Manufacturers & Exporters Association, and Pakistan Hosiery Manufacturers & Exporters Association have also demanded a zero rating regime for all exporters particularly the entire textile value chain.

In its Budget proposals for the fiscal year 2016-17 sent to the Finance Ministry, the Aptma urged the government to allow duty and sales tax exemption on import of raw and ginned cotton, considering the shortfall in the local cotton output.

It said that the government in the last budget imposed sales tax at five per cent on the import of raw and ginned cotton. On the other hand, the local cotton remained exempted from the sales tax.

Aptma said that the industry consumes around 16 million bales annually, whereas the total production of cotton in Pakistan is around 13 million bales due to which the spinning sector of Pakistan has to import around 25 per cent of its consumption requirement, majority of which is long staple and contamination-free cotton, which is not available in the country.

“This cotton is used to manufacture high value yarn and in turn high added products, which are mainly exported in one form or another,” the association said.

Aptma also said that in order to avoid cumbersome procedure of the sales tax refund, there should be no sales tax on raw cotton and ginned cotton at the import stage.

“The aspect of levy of tax to discourage import of cotton and to encourage local cotton is not applicable, as they are not substitute of one another,” according to the proposals.

As far as Customs duty on the import of raw cotton is concerned, Aptma said that in the budget 2014/15 one per cent duty was imposed, which was further increased to two per cent in the last budget. Through budgetary measures in November 2015, the government further enhanced the duty rate by one per cent. “Due to three per cent duty, the cost of production has further increased, as the prices of local cotton also increased in tandem with the imported cotton prices,” it said.

Due to the crop failure this year, the textile industry had to import more cotton as compared to the previous year; therefore, duty and tax should be exempted on the import of raw cotton.

However, the Aptma has demanded 15 per cent imposition of regulatory duty on the import of yarn and fabric under the Customs Tariff Chapter 55. The proposal has been forwarded in order to save domestic industry from the onslaught of dumped imports and to provide them with a level-playing field.

The association also demanded that the duty on import of manmade fibres such as polyester, viscose, acrylic and nylon be slashed to zero per cent. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paolo Ocleppo
Sandvik Hyperion

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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