Yarn manufacturers seek implementation of lower power tariff
It was proposed that 5% regulatory duty may be removed on cotton yarn till June 30, 2021, by the time the situation of cotton would be reviewed again. PHOTO: REUTERS
Yarn manufacturers have requested the federal government to implement the schedule of reduction in electricity tariff, which it had announced for the export-oriented sector.
In a statement on Saturday, Pakistan Yarn Merchants Association (PYMA) Senior Vice Chairman Muhammad Hanif Lakhany said that the government should direct the electricity distribution companies to follow the notification immediately.
“This way, domestic industries affected by the Covid-19 outbreak can get the much needed relief and stand on their feet,” he said.
Echoing his request, PYMA Vice Chairman Farhan Ashrafi told The Express Tribune that over one month had passed since the government announced the subsidy. He detailed that the electricity rate of 7.5 cents per unit for the export-oriented textile sector had been announced in order to boost the country’s exports.
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In this regard, a delegation of PYMA led by Lakhany and Ashrafi also called on K-Electric Chief Executive Officer (CEO) Moonis Alvi.
According to a press release, the officials inquired about the reasons behind failure to provide the reduced electricity tariff adjustment facility announced by the federal government for the textile sector.
“The power company should ensure prompt implementation of the government’s announcement in a bid to steer Prime Minister Imran Khan’s vision of promoting domestic industries and exports,” Lakhany said during the meeting.
Officials from the delegation also requested additional connections at their business places as well as change of names in the bills.
In response to PYMA’s concerns, Alvi said that the federal government had indeed issued a notification to reduce electricity tariff for the export-oriented sector but did not mention the time and mechanism through which this facility would be provided.
K-Electric has also written two letters to the federal government in this regard, he added.
The CEO assured the officials of considering their requests for more than one electricity connection at their business places and change of names in bills.
Officials from K-Electric told the PYMA officials that if they wanted to avail the facility of sales tax adjustment for each meter then taxpayers, registered with the sales tax department, would have to obtain a certificate of exemption from the Federal Board of Revenue (FBR).
The power utility firm chief also promised to resolve other issues being faced by the PYMA members.
Published in The Express Tribune, January 17th, 2021.
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