Interviews
APTMA demands equitable terms vis-à-vis India
20 Apr '12
2 min read
The Pakistan textile industry is expecting a level playing field vis-à-vis its Indian counterparts for exports and imports of textile goods and has asked for duties to be at par on both sides of the border.
The most influential textile lobby in Pakistan - All Pakistan Textile Mills Association (APTMA) has urged its government to negotiate fair and equitable trading terms with India, or else, put textile products in the negative list.
Without mincing words, Mr Mohsin Aziz – Chairman, APTMA told fibre2fashion, “We are looking for a level playing field. The duties, be it internal or those levied on imports, should be at par, in both the countries”.
He explained, “There is no duty on yarn in Pakistan, we only pay one percent income tax and also can be imported into Pakistan at the same rate. Whereas in India, yarn attracts 10% duty plus additional tariffs, which total up to about 22%, till the time it reaches the buyer. Additionally, synthetic yarn attracts 25% duty in India, while it is just 10% in Pakistan.
“So, when a Indian exports textile goods to Pakistan, he will have the advantage of lower duties in Pakistan, while if we were to export the same goods to India, it would prove to be a disadvantage for us, due to the high tariff structure in India, which is the main reason for asking for a level playing field”.
Pointing out an anomaly in the textile items put in the negative and positive list, he said, “They have put synthetic yarn and clothing in the positive list, while synthetic fibre which is a raw material is in the negative list, which is a big anomaly. Goods across the whole value-chain should either be put in the positive or negative list. So if synthetic fibre is placed in the positive list, we have no issue with the same”.
In conclusion, Mr Mohsin Aziz said, “The duties should be at par because we at this moment are facing acute power shortages and our interest rates too are very high. If the goods are imported from India on the present terms, it will open the flood gates for Indian textile goods in Pakistan, but we will not be able to export to India”.
The most influential textile lobby in Pakistan - All Pakistan Textile Mills Association (APTMA) has urged its government to negotiate fair and equitable trading terms with India, or else, put textile products in the negative list.
Without mincing words, Mr Mohsin Aziz – Chairman, APTMA told fibre2fashion, “We are looking for a level playing field. The duties, be it internal or those levied on imports, should be at par, in both the countries”.
He explained, “There is no duty on yarn in Pakistan, we only pay one percent income tax and also can be imported into Pakistan at the same rate. Whereas in India, yarn attracts 10% duty plus additional tariffs, which total up to about 22%, till the time it reaches the buyer. Additionally, synthetic yarn attracts 25% duty in India, while it is just 10% in Pakistan.
“So, when a Indian exports textile goods to Pakistan, he will have the advantage of lower duties in Pakistan, while if we were to export the same goods to India, it would prove to be a disadvantage for us, due to the high tariff structure in India, which is the main reason for asking for a level playing field”.
Pointing out an anomaly in the textile items put in the negative and positive list, he said, “They have put synthetic yarn and clothing in the positive list, while synthetic fibre which is a raw material is in the negative list, which is a big anomaly. Goods across the whole value-chain should either be put in the positive or negative list. So if synthetic fibre is placed in the positive list, we have no issue with the same”.
In conclusion, Mr Mohsin Aziz said, “The duties should be at par because we at this moment are facing acute power shortages and our interest rates too are very high. If the goods are imported from India on the present terms, it will open the flood gates for Indian textile goods in Pakistan, but we will not be able to export to India”.
Fibre2fashion News Desk - India
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