ISLAMABAD: The textile industry has demanded withdrawal of 7 percent customs duty on import of polyester in order to regain market share.
In the budget proposals for 2017/2018, the industry representatives said that there is 7 percent customs duty on import of polyester in addition to around 10 percent anti-dumping duty. World trade is rapidly shifting to man-made fiber from cotton. Polyester, cotton, viscose and acrylic are all raw materials and should be zero rated. Pakistan will lose textile export market share unless polyester price are rationalized.
The industry representatives said import of synthetic yarns in particular PP and PV has surged to more than 50,000 tons annually under various HS codes of chapter 55, which has adversely affected the domestic commerce of Pakistan resultantly many spinning units have ceased their operations.
It is proposed to impose 15 percent regulatory duty on the import of synthetic yarns entering into the domestic commerce of Pakistan. Since these yarns are being used for textile products domestically consumed by low income group, the industry representatives said.
Under SRO 39(I)/2017 the federal government has exempted the whole of custom duty on import of textile raw materials. Lycra and lyocil are also very important raw material for the textile industry particularly for denim sector and are not being manufactured in Pakistan.
In view thereof import of lycra fiber be also allowed duty free to encourage value addition in the textile industry.
This will help in fetching good price of our yarn and fabrics in export markets.
