Pakistan Hosiery Manufacturers Association (PHMA), like other value-added sectors, has badly been affected by the Federal Budget 2007-08 and government has ignored the development of this sector, said PHMA Zonal Chairman Saleem Parekh.
In a press release here on Friday, he expressed disappointment over the National Textile Strategy Committee, which failed to bring about a serious and positive change in the development of value-added sector.
He said that not a single meeting of the committee had yet been convened by Committee Chairman Tariq Saigol, adding that its purpose of formation had almost evaporated. Criticising government officials, particularly concerned ministers and advisors, he said they had depicted a wrong picture of the value-added sector in the media that this sector was producing low quality products by quoting the studies of international consultants "Gherzi and Werner".
PHMA zonal chairman rejected the impression of the value-added sector, saying this was an important and efficient sector. He said the international consultant had never studied the valued-added sector, therefore their studies were false.
Saleem expressed reservations over the budget, saying it ignored the value-added apparel sector, while imposition of one-percent withholding tax, increase in cost of labour to cost Rs 600 million to apparel sector, withholding tax on the sale of goods and services u/s 153 would spur the cost of production.
He added that new levies of four-percent income tax and one-percent special surcharge (regulatory duty) on import of apparel machinery, allied equipment and parts thereof would inflict additional financial burden on valued-added sector.-PR
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