KARACHI
\nPakistan Yarn Merchants Association (PYMA), while rejection Economic Coordination Committee\u2019s (ECC) decision to impose 5% regulatory duty (RD) on Polyester Filament Yarn, the primary raw material of textile industry, and has termed that move as the cause of destruction of 8 lakh power looms which were the lifeline of Textile Industry.
\nPYMA Senior Vice Chairman Sohail Nisar, Vice Chairman Javed Khanani, Former President FPCCI Nasir Hayat Magoon, Mohammad Usman, Saqib Goodluck, Khurshid Sheikh, Aslam Moten, Hanif Lakhany, Farhan Ashrafi, Danish Hanif, Saqib Naseem, Adnan Riaz, Khurram Bharara, Junaid Teli, Managing Committee and members strongly protested against ECC\u2019s decision to impose RD on Yarn at Karachi Press Club, where they appealed to Prime Minister Shahbaz Sharif and Finance Minister Senator Ishaq Dar to suspend the ECC decision to save the SMEs sector of Pakistan from destruction.
\n\u201cThe government to issue directives not to impose RD on Yarn in the best economic interests of the country. Otherwise, SMEs will be shut down and millions of workers will be unemployed,\u201d they requested.
\nPYMA leaders pointed out that there is already 11% custom duty on Polyester Filament Yarn, so with 5% RD, the duty will be 16% while fabric is also subject to 16% duty. As a result of the imposition of RD, 8 power lakh looms will be locked and million of workers will be unemployed while the 2 million households will be in poverty.
\nPYMA leaders questioned the government to benefit only two producers as to the wisdom of the decision to destroy Small & Medium Enterprises (SMEs), especially power looms which are associated with the textile industry. Although these two producers meet barely 25% of the industry\u2019s demand, they are not manufacturing other items.
\nPYMA leaders warned that they will continue their protest against the ECC\u2019s imposition of 5% RD on yarn until the decision is withdrawn. PYMA along with power looms owners of Karachi, Hyderabad, Tando Adam, Lahore, Multan, Faisalabad and Pakistan Art Silk Factories of Gujranwala were also protesting.
\n\u201cNational Tariff Commission(NTC), saying that the NTC sent its recommendations without any consultation with the stakeholders which was unfair. NTC must listen to us and any decision must be taken in consultation with stakeholders\u201d, they criticized.
\nThey mentioned to media persons that 11% customs duty was imposed on the import of Polyester Filament Yarn, which will increase to 16% after 5% RD. Yarn was subject to income tax, sales tax, additional sales tax and even anti-dumping. If all taxes were combined, 50 to 55% taxes were paid on import stage of Yarn, yet the imported raw material was cheaper than both local two producers. From which the monopolies and extreme profiteering of the two producers can be estimated.
\nPYMA leaders pointed out, \u201cAlthough local producers make only 25% of the total demand of Polyester Filament Yarn, the textile industry has to depend on 75% of imported Yarn. They further said that in the presence of ongoing inflation, high electricity & gas tariffs, labor issues, if more tax burden was imposed on industries, unemployment will increase and the government will have to pay many times more for 5% RD.\u201d
\nPYMA leaders appealed to Prime Minister Shahbaz Sharif and Finance Minister Senator Ishaq Dar to maintain the current duty structure on Yarn and requested them to ask the ECC to avoid imposing regulatory duty on Yarn.
\n\u201cInstead of measures to destroy economic activities, such policies should be formulated which will promote business and industrial activities and create ample employment opportunities.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Pakistan Yarn Merchants Association (PYMA), while rejection Economic Coordination Committee\u2019s (ECC) decision to impose 5% regulatory duty (RD) on Polyester Filament Yarn, the primary raw material of textile industry, and has termed that move as the cause of destruction of 8 lakh power looms which were the lifeline of Textile Industry. PYMA Senior Vice […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-299077","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n