Home / Knowledge / News / Textiles / Pakistan slaps 10% import duty on Indian cotton yarn
Pakistan slaps 10% import duty on Indian cotton yarn
19
Oct '15
The import of cotton yarn from India by Pakistani textile companies is set to get costlier with the government announcing a 10 per cent import duty that comes into effect from November 1, 2015, according to media reports.

Finance Minister Ishaq Dar announced the decision after holding a series of meetings with All Pakistan Textile Mills Association (APTMA). He also held discussions with representatives of the value added sectors in Islamabad at the weekend. Later, Dar told reporters about the different steps taken to resolve the problems being faced by the textile sector.

He said that regulatory duty of 10 per cent would be levied on the import of cotton yarn and grey and processed fabric with effect from November 1, 2015.

Among other steps, the Export Re-financing Facility (ERF) rate shall be reduced by 1 per cent (100 basis points).

The ginning and spinning sectors will qualify for Long Term Finance Facility (LTFF) and the rate of LTFF will be reduced by 100 basis points.

To resolve the issue of pending sales tax refunds, committees consisting of representatives from industry and the Federal Board of Revenue (FBR) will be constituted in each Regional Tax Office (RTO).

Dar also said the government would enhance efforts to prevent smuggling.

Representatives of the textile industry thanked the finance minister for the steps announced and assured they would extend support to the government in its efforts for the promotion of a tax culture.

The APTMA had earlier criticized the government for the rising cost of doing business in Pakistan and had called for bringing down regulatory duty on import of Indian yarn besides slashing the prices of electricity and gas tariffs.

But the 10 per cent import duty on cotton yarn export from India has drawn a sharp reaction from Faisalabad Chamber of Commerce and Industry president Chaudhary Muhammad Nawaz. He described it as a blunder which is tantamount to killing the value added textile sector which was the mainstay of the textile industry. Nawaz warned that there could be a backlash against the steps announced by Dar.

Nawaz said APTMA represents only one segment of spinners.”We support them as regards high cost of doing business in Pakistan. But the imposition of duty on imports of yarn is highly detrimental to the value added textile sector which was earning precious foreign exchange despite the daunting internal and external challenges.”

He demanded that government withdraw the unilateral decision of imposing duty on yarn and start negotiation with all stake holders to evolve a consensus policy to take the textile sector out of its present crisis. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 28th Jul 2017

DuPont launches new stretchable electronic inks, films

DuPont Advanced Materials has announced availability of its newest...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Apparel/Garments | On 28th Jul 2017

Columbia Sportswear posts Q2 2017 net sales of $398.9 mn

Columbia Sportswear Company has recorded net sales of $398.9 million...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Lynda Kelly
Suominen Corporation

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

Prathyusha Garimella
Prathyusha Garimella

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

July 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
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

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
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

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
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

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
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


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



X