PM urged to remove RD, ACD on yarn & reduce tax
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KARACHI: Pakistan Yarn Merchants Association (PYMA) has urged Prime Minister Imran Khan to remove additional customs duty (ACD), regulatory duty(RD) on basic raw material synthetic yarns for making the textile industry competitive in international markets, and also requested to reduce turnover tax on yarn traders, so that trade and industry can be restored to normal and exports can boost, which is already affected by COVID-19 pandemic.
In a meeting at PYMA, Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry(FPCCI), Senior Vice Chairman Pakistan Yarn Merchants Association (PYMA) and Farhan Ashrafi, Vice Chairman PYMA, convener FPCCI’s Central Standing Committee on Yarn Trading with members managing committee, discussed the negative effects of COVID-19 pandemic on trade and industry
Hanif Lakhany and Farhan Ashrafi said that due to skyrocketing prices of cotton and yarn in the local markets, the production cost of the textile industry has increased, which is the backbone of the country’s economy. “PYMA has repeatedly demanded the federal government that if the state really wants to increase exports, it must provide relief to the export oriented industries by reducing the taxes & duties so that exporters will be able to compete in the ongoing prices in world markets”, they added.
PYMA office-bearers appealed to the Prime Minister Imran Khan to play his effective role in saving the textile industry and other related small & medium enterprises (SMEs) from collapse, and issue directives the immediate abolition of additional customs duties and regulatory duties on synthetic yarns in the best interests of the economy and industry.
“Polyester yarn is currently subject to 11 per cent customs duty, 2 per cent additional customs duty and 2.5 per cent regulatory duty, as well as between 3 and 11 per cent anti-dumping duty. Therefore, the government should create a conducive environment by reducing duties, taxes so that to increase industrial activities as well as create vast employment opportunities, also make a significant increase in the country’s exports”, they pointed out.
Hanif Lakhany and Farhan Ashrafi also requested the Prime Minister Imran Khan to withdraw the 1.5 %turnover tax imposed on yarn traders and restore the previous rate of 0.1%, so that pandemic affected yarn traders who are facing a severe financial crisis and are struggling to survive, can get back on their feet.
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