Chairperson NTC assures textile millers of rationalising tariffs on industry inputs

LAHORE: National Tariff Commission (NTC) Chairperson Robina Ather has assured the All Pakistan Textile Mills Association (APTMA) Punjab of rationalisation of tariff on all industry inputs.

She was talking to APTMA Punjab Chairman Adil Bashir during her visit to the APTMA office on Saturday.

Chairperson NTC said the government has assigned NTC with the task of rationalising tariffs on all industry inputs in consultation with all stakeholders. “Earlier, the Federal Board of Revenue (FBR) was working on it,” she added.

Ather said she has visited APTMA Punjab to consult the stakeholders associated with the textile industry on this subject.

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Chairman APTMA Punjab, through a detailed presentation, pointed out that APTMA has drafted an integrated export-oriented scheme covering the whole value-added chain on the occasion. 

The proposed scheme, Bashir said, provides integration of all existing schemes and extends the coverage to the whole value-added chain with free mobility of inputs, intermediary and output goods from one licensee to another licensee, and simultaneously protects the government revenue through a foolproof mechanism and a fully automated system. “The same may now be considered and approved by Ministry of Commerce and FBR,” he asserted.

He further proposed the abolishment of Anti-Dumping Duty (ADD) and reduction in customs duty on import of Polyester Staple Fibre (PSF).

Bashir also requested the exemption of all the duties and taxes on the import cotton throughout the year. “NTC may determine realistic levels of effective tariff protection for the entire textile value-added chain,” he said.

According to him, all inputs required for the export industry should be zero-rated, meaning that they should be exempted from Value-Added Tax (VAT). “Protection to the local industry may be considered and extended through tariff-rate quota,” he said.  

Bashir urged the amendment of section 51 of the Anti-Dumping Duties Act, 2019 through Finance Act, 2019 regarding levy of anti-dumping duty on import of inputs under export-oriented schemes to be withdrawn.

The APTMA Punjab office bearer has sought withdrawal of customs duties and taxes on import of chemicals, hydrogen peroxide (HP) and other inputs used in the textile industry.

He maintained that separate customs sub-classification, as per international Harmonized System (HS) code, should be applied to raw materials required to produce high value-added and sophisticated textile products, and a long term tariff policy should be announced to develop man-made fibre industry in the country with an adequately rationalized duty and tariff structure for inputs and outputs considering the levels of production.

Bashir also stressed on the implementation of textile policy immediately. According to him, there is an urgent need to revise duty drawback rates upwardly, making them more realistic and rational. He further proposed to impose 15% regulatory duty on the import of synthetic yarns entering into the domestic commerce of Pakistan.

According to Bashir, machinery parts falling in Part II of the twelfth schedule also now attract withholding tax (WHT) at 2 per cent and provisions of exemption certificates are needed to be restored.

He maintained that the textile machinery and parts should be exempted from customs duty, sales tax, and WHT to upsurge investment and for basal metabolic rate (BMR) of the industry.

He said there is also an urgent need to abolish ADD on PSF on expiry of five years period and drastic reduction of customs duty to boost exports.

He said the government should ensure the availability of inputs and basic raw materials at competitive prices.

The visiting Chairperson NTC assured him of considering the demands and proposals of APTMA in order to facilitate the textile industry through tariff rationalisation. 

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