KARACHI: The Council of All Pakistan Textile Associations (Capta) fears that the rampant fabric smuggling from India, and third port import of Indian fabric, besides under invoicing are likely to hit the value-added textile sector’s growth.
The Capta representatives during a meeting asked the government to reduce sales tax for the ailing sector as it had already confronted with multiple problems.
Capta Chairman Zubair Motiwala chaired the meeting, which was also attended by Pakistan Apparel Forum (PAF) Chairman Jawed Bilwani, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Chairman Irfan Z Bawany, Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association (PCFA) Chairman Khwaja Muhammad Usman, Pakistan Knitwear & Sweater Exporters Association (PAKSEA) Chairman Kamran Chandna, Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Zonal Chairman Arshad Aziz, Pakistan Bedwear Exporters Association (PBEA) Chairman Naqi Bari, Towel Manufacturers Association of Pakistan (TMA) Chairman Iftikhar Malik, All Pakistan Textile Processing Mills Association (APTPMA) Chairman Iqbal Lakhany, Pakistan Cloth Merchants Association (PCMA) Chairman Abid Chinoy and former Pakistan Knitwear & Sweater Exporters Association, (PAKSEA) chairman Rafiq Godil.
They said that they, during meetings with officials concerned, in the past, had reached the understanding regarding reduction rate of sales tax to zero for the value-added textile sector to compete in global markets since Afghan transit trade remained the biggest hurdle along with under invoicing, third port imports of Indian fabric and smuggling from India into Pakistan.
Zubair Motiwala expressed concerns that the stuck sales tax refund claims and customs rebate claims of the exporters had caused increase in the production cost, besides creating financial crisis for the industry.
He feared that the government’s efforts to get GSP plus regime for duty free access to the EU markets may go in vain if the manufacturers and exporters were not relieved of sales tax.