ISLAMABAD: All Pakistan Textile Mills Association (Aptma) has proposed the government to allow import of duty and tax free 4 million bales of cotton per annum.
In its budget proposals 2017/2018, it said that cotton is the major raw material and represent 80 percent in the fiber mix in the textile products predominantly meant for exports. In view of the shortage of cotton during last two years.
It is submitted to allow important of 4 million bales of cotton per annum. There should be no duty and sales tax on the import of cotton.
In order to ensure fair value of the cotton to farmers it is proposed to allow up to 2 million bales during the cotton harvesting period that is 15th August to 30th November.
The Prime Minister of Pakistan on January 10, 2017 had announce Export Led Growth Package of Rs 180 Billion in a bid to boost country’s falling exports. The incentives in this regard were notified on January 23, 2017. So far Finance Ministry has released only Rs 1 billion for duty drawbacks claims. Exporters however claim that they are yet to receive any money under the scheme so far.
Furthermore, the government had issued revised sales tax zero-rating regime for five export oriented sector, i.e., textile, leather, carpets, surgical and sports goods from July 1, 2016 under which 5 percent sales tax is chargeable on supplies of locally-made finished articles of textile and leather products including finished fabrics to retailers or any other category of persons.
It is learnt that the government is planning to withdraw the incentives under Prime Minister’s Rs 180 billion export package due to paucity of funds in the forthcoming Federal Budget 2017/2018, similarly the government is likely to withdraw sales tax zero-rating facility granted to five export-oriented sectors in federal budget 2017-18 on the pretext of the revenue loss of Rs 15 billion during the last nine months (july2016-March2017).
