All Pakistan Textile Mills Association (APTMA) has lauded the imposition of 18 percent sales tax on import of cotton yarn, adding that federal government has provided level playing field to the local industry.
APTMA Chairman Kamran Arshad in a press statement on federal budget said that the government has eliminated the contradiction in the Export Facilitation Scheme.
Kamran Arshad demanded that loopholes in EFS scheme should be completely eliminated. He said earlier imported raw materials were tax-free, local raw materials are subject to 18 percent sales tax, adding that there were discrepancies in the local and imported value chain in the EFS scheme.
APTMA chief said sales tax on imported raw materials for exports was zero percent. He said there was an 18% sales tax on the purchase of local raw materials for exports resultantly weaving sector is facing crisis.
APTMA demanded that 18 percent sales tax should be imposed on the entire value chain of yarn and fabrics.
Kamran Arshad also called for the protection of local industry, adding that cotton yarn and fabric should be included in the negative list.
APTMA demanded that 5pc customs duty should be imposed on yarn and 11 percent on fabrics.
He said local polycotton and polyester have become 35 percent more expensive. Kamran Arshad also demanded that 18pc sales tax should be abolished on cotton seed and cotton cake.
