ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has urged the Punjab government to withdraw the proposed Punjab Infrastructure Development Cess (Amendment) Bill 2026 and engage with industry stakeholders before proceeding further.
In a letter to Punjab Chief Minister Maryam Nawaz Sharif, APTMA Chairman Kamran Arshad expressed strong concerns over the proposed legislation, which seeks to impose a 0.90 percent cess on goods manufactured, produced, consumed, imported into, or exported out of Punjab based on their assessed value.
The APTMA stated that adoption of the proposed bill would impose a substantial additional cost on the industrial sector, particularly export-oriented industries. Exporters operate in highly competitive international markets where prices are largely determined by global buyers.
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As a result, these additional costs cannot be passed on to customers and would directly erode the competitiveness of exports originating from or passing through Punjab.
Arshad argued that export-oriented industries are already subject to more than 18 federal and provincial taxes and levies. The cumulative burden of these costs already places severe pressure on margins and investment decisions. In this context, the introduction of an additional infrastructure cess is inconsistent with ongoing efforts at the federal level to rationalize and reduce the tax burden on industry and exports.
He added that the proposed measure also contradicts the Punjab government’s stated objective of accelerating industrialization, exports, and investment in the province. According to the APTMA, Punjab has experienced significant deindustrialisation in recent years, largely due to persistently high energy costs and an increasingly challenging cost environment for manufacturing.
The proposed cess would further increase the cost of doing business and discourage the establishment or expansion of industries in general and export-oriented sectors in particular.
The association also raised concerns about the definitions of “exported out of Punjab” and “imported into Punjab,” stating that they are overly broad and could potentially include the movement of goods passing through the province even if customs clearance takes place elsewhere in the country.
The APTMA further warned that the wide enforcement powers granted to cess officers could lead to abuse and harassment of businesses. Proposed measures such as physical inspections, check posts, pickets, and monitoring stations may hinder the smooth movement of cargo and goods.
“At a time when Pakistan urgently needs to expand exports and industrial activity, policy measures should focus on reducing the cost of production, eliminating irritants, and improving competitiveness rather than introducing additional levies and bottlenecks in the movement of goods,” Arshad said.
In view of these concerns, the APTMA requested the Punjab government to withdraw the proposed amendment bill and initiate consultations with industry stakeholders.
The association emphasized that a consultative approach would help ensure that policies aimed at generating provincial revenue do not inadvertently undermine industrial growth and export performance.
Copyright Business Recorder, 2026
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