Pakistan Textile Association calls for reduction of industry taxes

The All Pakistan Textile Enterprises Association (APTMA) recently discussed the issues facing the country’s textile industry with the Minister of Textile Industry Abbas Khan Afri.
APTMA Chairman Muhammad said that in the man-made fiber sector, Pakistan lacks materials for manufacturing special man-made fibers such as acrylic, viscose, bamboo fiber, and Lycra. However, a 5% import tax is levied on the import of these products, which increases cost pressure on textile companies. Muhammad said that in Pakistan’s textile industry, the usage rate of man-made fibers is less than 20%, while in other textile producing countries, its usage rate is as high as 60%.
In the field of raw cotton, according to the country’s 2014-2015 fiscal plan, raw cotton imports are levied with a 1% tariff and a 5% sales tax, which will lead to an increase in costs for the spinning industry, especially for the use of long-staple cotton and non-polluting cotton. Cotton enterprises producing high value-added yarn have a greater impact.
It is worth noting that textile raw material waste used for regeneration in spinning mills is also subject to high tariffs. When it is sold, it is levied a sales tax of 17%, and the yarn produced with it is also levied a tax rate of 2%, making the product The cost has increased significantly. The above problems have weakened the competitiveness of Pakistan’s textile industry to varying degrees.
According to the latest data released by the Pakistan Bureau of Statistics, in the first 11 months of 2013 to 2014 (July 2013 to May 2014), Pakistan’s textile and apparel exports were US$12.626 billion, a year-on-year increase of 5.96%.