KARACHI: Towel Manufacturers’ Association (TMAP) of Pakistan chairman Feroze Alam Lari said despite of big export orders available with the value-added textile sector of the country, the textile manufacturers and exporters cannot operate to their capacity due to shortage of cotton yarn, which is basic raw material for the textile industry.
It was very dangerous for the national economy that cotton production has fallen to 5.5 million from 15 million bales. Due to scarcity of cotton yarn in the country its price touched the sky and the cost of cotton yarn reached its peak during the current decade and the bullish trend of cotton yarn price pushing the exporters towards unviable situations and un-competitiveness in the international market.
However, few days back authority only removed 5 percent regulatory duty on import of cotton yarn which helped little bit to the export oriented sector, but now we as an association request to the concern authority to kindly abolish all taxes and duties on import of cotton yarn which will be the life line for the value added textile industry.
At present government is charging tax on import of cotton yarn custom duty 11 percent, Sales Tax 17 percent, Income tax 11 percent and additional custom duty 2 percent. If we club these taxes the government charges 41 percent taxes including sales tax on import of cotton yarn.
We also urge please impose a complete ban on export of cotton yarn up to 30 count till the sufficient raw material available to the Textile sector. Our Textile sector can better perform and earn valuable foreign Exchange for the country if we put a comprehensive ban on export of yarn of 30 count. It will be positive for us that we convert it into value added goods & export these goods in the international market instead of cotton yarn.
Export of textile goods are the backbone of our economy. The value-added textile export industry of this country contributes around 62 percent to total exports. The Textile Sector provides the highest urban employment particularly to female workforce and as well as supports 40 allied industries in the country. Textile Industry also plays a vital role to generate employment as well as helping to reduce poverty in the country.
We, Towel Manufacturers Association of Pakistan urges the entire Government, if the authority wants to fly their Export kite higher and higher, kindly ensure availability of quality cotton yarn in sufficient quantity in the domestic market to achieve its ambitious targets of enhancing textile exports to $50 billion by the year 2025.
We also urge the government to allow completely duty-free import of cotton yarn till the shortage of cotton yarn is overcome. It will be a positive nod for the value-added textile export sector to achieve its exports targets and fetch valuable foreign exchange for the national kitty.—PR
Copyright Business Recorder, 2021