All Pakistan Textile Mills Association (APTMA) while expressing reservations on the federal budget, said that the cruel budget will destroy the sector, reported 24NewsHD TV channel.
In a press statement, APTMA claimed that the federal government failed to present any solution to the issues faced by domestic industries. The power tariff for the textile industry touched 16.4 cents per unit and after the budget, the textile industry unit will zoom to 18.4 cents which will have disastrous effects on the industry.
APTMA claimed the power rates for the textile industry in Pakistan were double compared to neighbouring countries. The burden of cross-subsidy on the textile industry may increase from Rs240 billion to Rs380 billion.
After the budget, there were fears that the country’s exports would register a big decline. Moreover, due to a fall in exports, unemployment will increase in the country.
APTMA said the external sector may face problems due to a decline in exports. Textile Mills Association said tax on exports was increased from 1% to 29% in the budget while an advance tax of 2 percent was levied on exports. Owing to advance tax, the textile sector will face a shortage of capital.
An 18 percent sales tax on the textile sector will increase the cost of production while the implementation of a turnover tax on the textile industry will freeze the industry. Due to taxes and power prices, 60 percent of the textile industry in the country was closed.
Textile Association said the textile industry was already on the brink of collapse which was employing around 50 percent of the labour force. APTMA urged the government to announce emergency measures to save the textile industry.
Reporter: Waqas Azeem