Pakistan Budget 2005-06, proposals for textiles, cotton and allied sectors

07 Jun '05

3 min read

The Budget 2005-06 was today presented by Mr. Omar Ayub Khan, Minister of State for Finance in the National Assembly of Pakistan.

Following are the highlights of the budget proposals focusing textiles, garment, cotton, fibre, raw materials, furniture, yarns, leather goods, sports goods and machinery sectors.

• Textile industry is the backbone of exports sector (cotton, yarn, cloth and garments)
• Private sector investments in textile industry up at $ 4 billion

• Textile exports touch the $10 billion mark
• Cotton output up by 28.45%
• Production of cotton yarn up18%

• Brand Cotton of Pakistan to be the symbol of the best cloth in the world
• Ginned cotton up by 45%
• Custom duty on basic raw materials for chemical, textiles, furniture and soap industry are being exempted from duty or is being reduced
• GST zero-rating to entire chain of textile sector proposed
• Zero rating scheme also proposed for carpet, leather, surgical goods and sports goods industries
• Introduction of zero rate scheme also applicable to their inputs of utilities at the loss of tax revenue from textile, leather, carpet, surgical goods and sports goods sector, thus, where retail annual sale exceeds rupees fifty lac in case of cloth, garments, leather goods, carpets, sports goods and surgical goods sectors, it is proposed to levy 3% tax inclusive of 1% income tax which will be final tax
• Machinery for ginning industry inthe textile chain proposed to be exempted from customs duty. Similarly duty on presses for ginning industry is also proposed to be withdrawn

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