APTMA laments increase in import duty. PHOTO: FILE
“One percent increase in import duty (from 2% to 3%) would effectively increase the total duty to 4% because there is already 1% additional duty in place,” it said in a press release.
According to the association, the government was showing an indifferent attitude at a time when the textile industry was reeling from the effects of a massive crop failure in the country.
The production of cotton declined almost 35% this year, which badly hurt the overall Gross Domestic Product (GDP).
“It is not possible for the textile industry to continue to operate in these conditions and contribute to higher exports and provision of yarn to the domestic downstream if they are made to pay such exorbitant amount of duty on its basic raw material,” stated the association. “Pakistan has become a net importer of raw cotton; despite the fact that the textile industry is trying to remain competitive, contributing to the national exchequer and at the same time retain jobs of millions,” it added.
“If we have to eventually import over 3 million bales due to the crop failure, then the government should abolish the duty completely,” they demanded. “The industrialists are already suffering due to high cost of doing business and acute shortage of energy and now it has to compete with a surge in cotton yarn imports from its regional competitors,” APTMA Chairman Tariq Saud said.
He urged the government to restore the free trade regime in cotton trade as originally envisaged and announced by the Prime Minister Muhammad Nawaz Sharif.
Published in The Express Tribune, June 29th, 2016.
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