Karachi, March 05, 2021: Asiff Inam, Chairman APTMA Sindh-Balochistan Region has shown his deep concern on drastic decline in price of fine counts of yarn by Rs. 10,000/- per bag in the Faisalabad Yarn Market which is in expectation of massive tax evasion plan by individuals in anticipation of permission be allowed to import cotton yarn from India through Wagah Border.
In a statement issued he has said that industry has procured cotton at very high prices and they are not in apposition to sustain these losses. He said that about 90 percent of yarn produced in the country is available for the domestic market and there is no shortage of yarn in the country.
Inam urged the government not to allow import of cotton yarn from India as India has imposed restriction on import of all Pakistani products. To restrain import of yarn from India and support the local industry he demanded the government to withdraw levy of sales tax on zero rated sector so that the genuine industry may flourish and be able to provide yarn at affordable prices.
He also urged the government to save domestic industry from total closure, DLTL should not be provided on those entire textile products produced using imported materials which are either produced or manufactured in Pakistan.
As all such textile items which are produced using imported materials are incurring losses to the national exchequers because most of the exporters falls under the category of Fixed Tax Regime whereas they are also availing DLTL facility ranging between 2percent to 4percent and subsidized Export Refinance Facility which is provided from the revenue earned by the government from Pakistani Taxpayers.
DLTL and ERF should only be provided on the products produced using domestic yarn and fabrics, he added.
