APTMA urges govt to withdraw GIDC
Levy is crippling textile industry and causing decline in exports
PHOTO: AFP
KARACHI:
All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud urged the government to completely withdraw the Gas Infrastructure Development Cess (GIDC) imposed on the textile industry.
He said that the continuous decline in exports is a matter of great concern particularly in the textile sector, which contributes over 55% to total exports of the country. Therefore, any decrease in textile exports naturally affects the foreign exchange earnings.
“The textile industry is facing a grave situation due to high cost of doing business and liquidity constraints,” he said, adding that the imposition of GIDC has served to cripple the industry, which is already burdened and has become uncompetitive against regional competitors in the absence of liquidity flow.
The Aptma chairman said, “With oil and natural gas prices declining in the international market there is no justification for imposing GIDC.” He urged the government to remove it from the entire sector to enable the industry to regain its competitive edge and market share.
Saud demanded that the government impose 15% Regulatory Duty on import of yarn and fabric falling under Chapter 55 of the Custom Tariff and reduce the duty on import of Viscose and Acrylic Fibres to zero per cent. This would allow the domestic yarn producers to compete with foreign producers.
Published in The Express Tribune, April 8th, 2016.
All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud urged the government to completely withdraw the Gas Infrastructure Development Cess (GIDC) imposed on the textile industry.
He said that the continuous decline in exports is a matter of great concern particularly in the textile sector, which contributes over 55% to total exports of the country. Therefore, any decrease in textile exports naturally affects the foreign exchange earnings.
“The textile industry is facing a grave situation due to high cost of doing business and liquidity constraints,” he said, adding that the imposition of GIDC has served to cripple the industry, which is already burdened and has become uncompetitive against regional competitors in the absence of liquidity flow.
The Aptma chairman said, “With oil and natural gas prices declining in the international market there is no justification for imposing GIDC.” He urged the government to remove it from the entire sector to enable the industry to regain its competitive edge and market share.
Saud demanded that the government impose 15% Regulatory Duty on import of yarn and fabric falling under Chapter 55 of the Custom Tariff and reduce the duty on import of Viscose and Acrylic Fibres to zero per cent. This would allow the domestic yarn producers to compete with foreign producers.
In an effort to revive the industry, he demanded immediate payments of pending refunds by the Federal Board of Revenue. He also proposed zero rating of all taxes on exports and providing rebate in the form of DLTL at 5% against export of yarns, fabrics, made-ups and garments.
Published in The Express Tribune, April 8th, 2016.