KARACHI: The representatives of textile industry have asked the Federal Board of Revenue (FBR) to allow duty and tax concession on import of generators above 1,100 KVA.
The industry, in its budget proposals for fiscal year 2017-18, said Pakistan is passing through the most difficult phase of its history due to the energy crisis which has hurt the viability and competitiveness of the export-oriented textile units in the international market.
The country’s energy demand has grown at an annul consumption growth rate of 8 to 10 percent per annum. Therefore, there is a dire need of sustainable growth in energy supply and infrastructure capacity of about 10 percent per annum to support the steady growth in the country’s GDP.
The government in the federal budget 2014-2015 had levied import duty at 5 percent on generators above 1100 KVA which has not only increased the cost of operation of textile units resultantly our products become uncompetitive in the international market as the cost of doing business in Pakistan is much higher than its competitors in the region.
To mitigate the high cost of production due to energy shortage in the country, custom duty at 5 percent on the import of generators above 1100 KVA should be brought back to the position before budget 2014-2015.
The FBR should consider this proposal as there is acute shortage of both gas and electricity in Pakistan and in order to encourage in-house production of electricity to operate mills and to increase export, there should be no duty on the import of generators for production purpose.
