APTMA: Textile exporters’ woes

India charges a 28% duty, Pakistan charges only 5%, complains APMTA Chairman

KARACHI: All Pakistan Textile Mills Association Punjab Chairman Amir Fayyaz has deplored the delay in announcement of promised textile package by the government. This, he alleged, has led to a transfer of Pakistani textile jobs to India which is dumping its textiles into Pakistan’s unprotected textile market.

Addressing media along with the APTMA administration, Fayyaz revealed that the approach of Pakistani government towards textile is in contrast with its approach to other textile economies. “Textile sector considered as creator of jobs around the world which why is it is protected and facilitated.”

He said exports are universally zero rated but in Pakistan the textile exports are subjected to different taxes and levies that have reached 5% of the export value. These taxes, he claims, are not being refunded. He said India, China and Bangladesh provide generous rebate on textile exports that cover all taxes, even those paid during manufacturing and transportation. He said that the duty charged on diesel used in the export process is factored in this rebate. He said APTMA has provided documented details of the different taxes they pay on exports that are not refunded.

Fayyaz added, “India facilitates its textile exporters beyond normal rebates. Under the concept of ‘focus markets’ the Indian government provides 3% to 6% additional rebate on textile exports to 94 countries, which includes Pakistan. This has provided an opportunity for the Indian exporters to dump their textiles in Pakistan”.

Additionally, India charges a 28% duty on imported yarn to protect its domestic industry, whereas Pakistan charges a mere 5%. “Why can’t we levy the same duty on Indian yarn that is charged by Indian government on Pakistani yarn?”

Published in The Express Tribune, October 4^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.