All Pakistan Textile Mills Association (Aptma) Central Chairman Asif Inam has demanded the reduction in power tariff to 9 cents per kilowatt-hour (kWh), lowering of interest rate to 12% and restoration of zero-rated facility to enable the textile industry to contribute to the national economy through exports, investment and employment.
Speaking at a press conference at the Aptma Lahore office on Tuesday, Inam lamented that the textile industry was paying Rs240 billion in cross-subsidies and over Rs150 billion in stranded costs. He stressed that the supply of electricity at 9 cents would lead to additional demand for over 300 megawatts and provide Rs500 billion in revenues.
The central chairman questioned the justification for the high interest rate of 22% when inflation had dropped to 11.8%. He pointed out that the government could save Rs3 trillion in interest payments by slashing the interest rate. Regarding the demand for zero-rating, he asked why the government was holding on to the industries’ sales tax refund claims of Rs300 billion. The government should collect sales tax at the retail stage, which has the potential to contribute over Rs250 billion, he added.
Published in The Express Tribune, June 5th, 2024.
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