Export-oriented industry: TMA calls for continuation of tariffs

KARACHI: Towel Manufacturers' Association (TMA) requested to the government to continue concessionary tariffs of utilities for the export-oriented industry of the country.

In a letter to Advisor for Commerce, Textile Industry, Production and Investment, Abdul Razzak Dawood, the TMA said that "on the recommendation of Ministry of Textile, FBR provided concessionary rates of US cent 7.5/kwh for electricity, RLNG at $6.5 per MMBTU and gas at RS786 per MMBTU to registered manufacturers and exporters of five zero rated sectors...".

The TMA showed its concerns about dropping global demand for its products from Covid-19, making it challenging for the industry to keep it up to the last year's exports. It also appreciated the government's steps for the industry's uplift. The association said that first, the exporters suffered from the backlog of sales tax refunds and now the Covid-19 pandemic.

It said that there are steps required to retain the competitiveness of the industry on the world market, as the fuel oil and gas tariffs play a major role in the output costs. "We request you to please recommend to the relevant ministries to extend the concessionary rate for utilities for the next three years," the TMA letter said.

Copyright Business Recorder, 2020