Mr Asiff Inam, Chairman – APTMA Sindh-Balochistan Region, has shown his deep concern on drastic decline in the 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.
Mr Asif Inam, in a statement issued to the press and electronic media, 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.
Mr Asif Inam urged the government not to import cotton yarn from India as India has restricted all Pakistani products. To restrain the import of yarn from India and support the local industry, he demanded the government to withdraw the levy of sales tax on the zero-rated sector so that the genuine industry may flourish and provide yarn at affordable prices.
He also urged the government to save the 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 fall under the category of Fixed Tax Regime. In contrast, they are also availing DLTL facility ranging between 2% to 4% and subsidized Export Refinance Facility, which is provided from the government’s revenue from Pakistani Taxpayers. DLTL and ERF should only be provided on the products produced using domestic yarn and fabrics, he added.