Pakistan’s Ministry of Commerce calls for levying % regulatory tax on yarn imports
Recently, after talks between the Finance Minister of Pakistan and the Chairman of the Pakistan Textile Mills Association (APTMA), they announced that starting from November 1, 2015, a 10% tariff will be imposed on imported cotton yarn, gray fabrics and processed fabrics. At the same time, ginning mills and the textile industry will receive long-term financing and export financing rates will be reduced by 100 basis points.
In addition, Pakistan will establish a regulatory committee composed of textile industry representatives and federal commissioners dedicated to inspecting and combating smuggling. The Finance Minister of Pakistan said that as of May 31, the Pakistani government had arranged 22 billion rupees in funds to support the domestic textile industry and issued 2 billion rupees in textile tax rebates. Under Pakistan Prime Minister’s plan, cotton farmers will receive a subsidy of Rs 5,000/acre to improve
APTMA Association members include 80% of the country’s textile export companies. APTMA Chairman Tariq Saud called on everyone to support the government’s decision, believing that this move can boost the domestic textile industry. “Pakistan’s yarn exports to India are subject to a tariff of up to 28%, while the tariff for our imported Indian yarn is only 5%. A large amount of imported cheap Indian yarn has poured into Pakistan, causing serious losses to the textile industry and even the national economy. .”
Although textile enterprise interest groups represented by APTMA strongly support it, downstream enterprises are complaining and strongly oppose it.
The Faisalabad Chamber of Commerce and Industry (FCCI) textile industry meeting was held last week. The meeting was attended by the Pakistan Knitting Industry Association (PHMA), the Pakistan Textile Processing Association (APTPMA) and other downstream industry associations. The meeting opposed the levy on imported yarn. high tariffs and warned that if the relevant departments did not reverse the decision, they would hold protest marches.
“This decision will increase domestic yarn prices by 500 to 1,000 rupees per bale, which will seriously affect the export of textiles.” Amjad Khawaja from PHMA said, “APTMA is trying to create the illusion of domestic yarn shortage to increase yarn prices. Price.”
FCCI Chairman Chaudhary Muhammad Nawaz said, “We support all other requirements of APTMA, such as lowering electricity bills, increasing power supply, and increasing export tax rebates. However, the increase in import tariffs should be canceled immediately, and the government should invite all textile industry stakeholders to organize meeting to discuss a common countermeasure to solve the crisis facing the textile industry.” Pakistan’s Ministry of Commerce called for a 25% regulatory tax on yarn imports
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