Pakistan’s textile industry may face hike in tax
The Pakistan government has announced an economic relief package for export-oriented industries, however, it is planning to increase the cost of doing business. The textile industry has 6% share in the country’s GDP and a 58% share in total exports as per Rizwan Ashraf, Chairman- All Pakistan Textile Mills Association (APTMA). He pointed out that the government was planning to raise the tax rate on underground water used by textile industry, which is consumed as a raw material. He said that the sector was paying water bills regularly. “Every textile unit pays Rs 13,000 per cusec of water monthly; a small industrial unit consumes two to three cusecs of water monthly while the big ones utilise roughly 20 cusecs,” Ashraf stated.
Pakistani textile industry considered as the backbone of the export sector; the industry is crumbling under high energy prices, struck up refunds and tight monetary policy. The textile industry is facing tough competition from India, Bangladesh, Vietnam, Thailand and the likes.News Pakistan Region