Pakistan Textile Mills Association Calls On The Government To Cancel Cotton Import Tax

The chairman of the Pakistan Textile Mills Association (APTMA) urged the federal government to immediately withdraw 3% of the tariffs on imported raw cotton, 2% of additional duties and 5% of sales tax, so as to enable the textile industry to meet its domestic demand for cotton and export orders.

He said that the Pakistan government's crop estimate was generally high. This year, the original estimate of the original 15 million package was revised to 10 million packets. Now it is about 9 million 500 thousand packages, resulting in a shortage of 5 million 500 thousand packages. The latest cotton production statistics of Pakistan cotton rolling Association (PCGA) and domestic cotton prices show that compared with the same period last year, the current listings are few, and the market share of cotton from October 1, 2018 to October 1, 2019 has dropped by 39% over the same period last year.

In addition, compared with other cotton producing countries, the quality of locally produced cotton has also declined, and the government should invest in improving seed quality. The industry can only purchase cotton from the international market, and at the same time, it also has to pay extra cost for freight.

He also urged the government not to delay the release of exporters' refunds because the industry is currently facing a liquidity squeeze, and the demand for liquidity has increased sharply due to the imposition of business tax and devaluation.