ISLAMABAD : Pakistan Silk Rayon Mills Association (PSRMA) has sought incentives at par with FATA/ PATA and ban on import of every textile products which is being manufactured locally.
In a letter to Chairman Federal Board of Revenue (FBR), Siddique Khan , President, Gujranwala Chamber of Commerce and Industry (GCCI) has shared concerns raised by the PSRMA regarding market dynamics.
Pakistan Silk Rayon Mills Association represents stakeholders involved in the production, distribution, and promotion of silk and rayon textiles in Pakistan. This sector plays a crucial role in the country’s textile industry, which is one of the largest contributors to Pakistan’s economy.
According to the President , GCCI has been approached by the PSRMA regarding several challenges currently impacting their industry in Punjab as there is a huge differentiate between Punjab and FATA / PATA regarding the following points ;(i) sales tax exemption in FATA / PATA is resulting in significant losses for our local industry ;(ii) electricity costs in FATA/PATA are substantially lower than in Punjab Region, creating an unfair competitive advantage ;(iii) businesses in FATA / PATA enjoy exemptions from both the 18% sales tax and 5% income tax on electricity bills;(iv) unregistered entities are imposing an additional 4% tax burden on our members;(v)
there is no 4% Further Tax imposed in the FATA / PATA market ;(vi) FATA/PATA also benefits from an exemption from Valuation Tax;(vii) yarn prices in FATA / PATA are being offered at approximately 20% discounts ; and (viii) cloth produced in FATA / PATA is frequently sold in Punjab, which should render it subject to taxation according to the law but there is no check and balance .
The Association is of the view that it is essential to encourage unregistered entities to register to ensure adequate tax collection for the national treasury.
The President GCCI has stated that the said industry is in crisis, with 40% of businesses already closed. If these conditions persist, many more will follow the suit.
He has requested the federal government to restore of 0.9 cent facility in electricity bills for the textile sector, stop the smuggling of fabric and every textile product may be banned from imports that are already produced locally.
” The concerns outlined represent genuine challenges that require your urgent attention. If these inequities continue, it will become increasingly difficult for our industry to compete effectively in both local and Punjab markets. There is a need of new policies that would enable the Pakistan Silk Rayon Mills Association (PSRMA) to compete fairly and thrive in the marketplace,” concluded Mr. Khan.
