Textile sector: Centre may rationalize tariff structure of raw materials

ISLAMABAD: The federal government is likely to rationalize tariff structure of raw materials used in the textile sector. This proposal came under consideration at the 14th meeting of the Tariff Policy Board (TPB) on Thursday which met with Adviser to the Prime Minister on Commerce and Investment, Abdul Razak Dawood in the chair.

The meeting was attended by the Secretary Ministry of Commerce, the Chairperson, National Tariff Commission (NTC), Member Customs Operation, Federal Board of Revenue (FBR), Additional Secretary Ministry of Industries and Production and other senior officials of the concerned ministries.

The Board reviewed the incentives given to the industry in the Finance Act, 2020. The Adviser stated that positive impact of the tariff rationalization is being reflected in the enhanced industrial activity as well as export performance. He further stated that tariff rationalization is a complicated exercise and it would take time to implement National Tariff Policy 2019-24. He added that a three year plan for tariff rationalization, after analyzing the value chain of the priority sectors, should be finalized as early as possible.

According to the Commerce Ministry, keeping in view the importance of textile sector, the Board members emphasized that tariff structure of the textile sector should be rationalized and duties on raw material, used by the textile sector, might be reduced.

The meeting decided that the Tariff Policy Centre would conduct detailed study on tariff structure of the textile sector and recommendations of the study would be placed before the Board for its decision. The Ministry of Commerce, in consultation with the Tariff Policy Centre, presented a future roadmap of tariff rationalization before the Board for consideration and feedback. The Board also discussed different proposals, received from different sectors, regarding tariff rationalization.

The shared data of tariffs already rationalized and new chains will be studied in detail prior to reaching any final decision," said an official.

Wrapping up the meeting, the adviser underscored that tariff related measures should promote equitable development and competitiveness of the local industry, resulting in growth of our export-led "Make in Pakistan" growth.

The Board ensured that all out efforts would be made to provide maximum benefits to industry so that economy of the country could be revitalized at this difficult juncture.

Copyright Business Recorder, 2020