Textile industry seeks Rs29.761bn incentive package
09 Mar '07
2 min read
In order to support textile sector and to make exporters globally competitive, Ministry of Textile Industry is mulling over recommending to the Pakistani Government a Rs29.761 billion incentive package for sector.
Another proposal for textile exporters, which request to cancel provincial levies and both direct and indirect federal taxes, is also being backed by the Ministry. This one is expected to cost the Government Rs20.674 billion.
Ministry received 32 suggestions from National Textile Strategy Committee's Sub-Committee Chairman Tariq Saigol for being included in the incentive package, which could preserve pre-quota shares of sector in overseas markets. Of these, Ministry selected four recommendations after examining all and will forward them for sanction.
Subcommittee is demanding zero-rating of textile exports, along with duty free import of chemicals and dyes for apparel and home textile industries as well as of processed fabrics.
Ministry wants revision of duty drawback rates for incidence of import tax on polyester staple fibre. Subcommittee has further suggested that Bt cotton technology be introduced to raise cotton yields and that condition of taking prior permission for importing raw cotton be removed.
Ministry of Textile Industry will also suggest slash of turn over tax (TOT) on power looms from 1.2 percent now to 0.5 percent to the Government, which could require investment of Rs100 million.