The Gujranwala Art Silk Yarn Merchants Association has demanded of the government to allow the import of B-grade yarns and other below A-grade qualities so as to enable the industry to slash its production cost.
Usman Younis, Secretary General of the association told Business Recorder here on Saturday, 'we have already asked the ministry of commerce and central board of revenue that there are several kinds of textile machines running in Pakistan, which needs different type of yarns'.
Citing example he said the water jet loom, air jet loom, doubling and twisting machines and embroidery machine need A-grade yarn. Similarly knitting machines use A & B grade yarns while conventional power looms can use all sorts of qualities such as A, B & substandard, he maintained.
When importers are prepared to pay custom duty at the tariff of A-grade yarns, the government should have no objection for the import of below A-grade yarns.
The weaving sector would be able to consume low quality yarn and could curtail their manufacturing costs from 15 percent to 30 percent. Thus the poor will have the availability of low cost fabrics too, he added.
He said the commerce ministry should advise the central board of revenue to issue SRO in this respect so as to facilitate the textile industry to avail low priced yarns.
He also demanded of the finance and commerce ministries to exempt payment of three-percent additional sales tax on filament yarn to the unregistered persons.