The Pakistan Yarn Merchants Association (Pyma) has urged the Central Board of Revenue (CBR) to withdraw discriminatory rates of customs duty prescribed in the new budget on import of nylon, acetate yarn and Cuprammonium yarn.
Pyma Chairman Khurshid Shaikh, in a fax to the CBR Chairman, has said that the textile sector has been allowed to import these items at a subsidised rate of five percent ad valorem duty, whereas if the same items are imported by the importers other than the textile sector, the rate of duty is 15 percent and 10 percent on three items respectively.
He said that the association members were extremely surprised to know that the import of these items with specific H.S. codes were subjected to special condition, ie import by the textile sector, while all other yarns were freely importable by both the trade and industry.
He pointed out that virtually all the imports were currently handled by the traders as the weaving and knitting sector was totally unorganised and did not divert their resources in procurement and import of raw materials.
The Pyma chief said that the conditional import of special type of yarn seemed to negate the stated policy of the government regarding de-regulation. This condition would hamper trade and result in misuse and abuse of the policy, he added.
Khurshid requested the CBR Chairman to withdraw conditions on import of this vital raw material to enable the industry to take full benefit of the rationalisation of the tariff.
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