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Pakistan's textile body raises tax, tariff issues with government

In the light of textile mills facing closures, owing to the lack of conducive policies to promote growth, the standing Committee on Textile of the Senate took up the issue with the government. The Chairman of the committee Mohsin Aziz says that APTMA has submitted a detailed report, suggesting the restoration of the sector by addressing the issues related to tax, tariff and investment.

As per Aziz the export-oriented sector is lagging behind in Pakistan while it has witnessed immense growth in recent years in neighbouring countries. The Pakistan textile industry has clocked 22 per cent growth during the last five years, whereas the growth rate in Vietnam, China and India has been 230 per cent, 97 per cent and 94 per cent respectively. Aziz pointed out the textile industry is burdened with Rs 38 billion gas infrastructure development cess, Rs 78 billion electricity surcharge and Rs 65 billion innovative taxes. It all adds up to Rs 157 billion per annum, which is 12 per cent of the sales of the industry.

Aziz said the committee has stressed upon the need for restructuring the electricity tariff policy and bringing in the zero rating regime for textile operators, which is in sync with WTO laws, in order to make the sector more competitive and growth-oriented. He also pointed out many bottlenecks on the investment side and said the high cost of doing business is ruining the textile industry.

 
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