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

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Ashok Desai
Bombay Textile Research Association

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Paolo Ocleppo
Sandvik Hyperion

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak
Bombay Hemp Company

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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