Reports indicate that the Federal government is all set to announce another package for the textile sector. The Ministry of Commerce and Textile has twice briefed Prime Minister Shahid Khaqan Abbasi on this issue, following which, around seven proposals have been finalised.
The package would be related to cost of doing business as the textile sector was determined to get relief in electricity and gas rates. It has been proposed that electricity rate for the textile segment should fall to Rs 1.45 per unit — presently the rate is around Rs 11 per unit. The prices of regasified liquefied natural gas (RLNG) for the textile sector is expected to fall to Rs 300 MMBTU as against the current gas tariff of Rs 1001 per MMBTU.
The Commerce Ministry has also proposed that the government pay Rs 35 billion sales tax refunds and around Rs 17 billion customs duty drawbacks to the textile sector.
The textile policy liabilities have touched Rs 15 billion, it has been suggested that the government should also address this issue. Further, it has also been proposed that the government should implement a zero rating on packaging material.
Besides, it has been purposed that turnover limit of income tax of the power loom sector should fall from 1 million to 0.5 million. The government had announced Rs 180 billion trade enhancement package in January last year, of which Rs 160 billion was set aside for the textile industry, however, the Ministry of Finance has so far released Rs 16 billion under the prime minister textile package. Officials at the Ministry of Commerce say that exports of the country have registered an upward trend in the first six month following this package.