Gov’t urged to resolve issues of textile industry on priority

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ISLAMABAD, June 20 (APP): Islamabad Chamber of Commerce and
Industry Tuesday called upon the government to address the genuine
issues of textile industry on priority basis to save it from further
problems.
“The prime minister had announced export incentive package of
Rs 180 billion for the textile industry, however delay in
implementation on the package is creating concerns in the textile
industry”, President ICCI Khalid Iqbal Malik in a statement said.
He stressed that government should ensure prompt
implementation of said package in letter and spirit to revive the
industry and improve exports.
He said the tax refunds of around Rs 300 billion of
textile industry were stuck up with Federal Board of Revenue (FBR)
due to which the industry was facing liquidity problems.
He stressed that government should take measures for prompt clearance of
all stuck up tax refunds to ease the woes of textile industry.
He said textile sector was playing leading role in
exports of the country, but due to lack of attention, exports were
going down.
He stressed that government should come up with strong
measures to rescue the textile industry from current difficulties.
He called upon the government to ensure enforcement of zero-
rating of sales tax for the textile industry.
He further urged that the sales tax on packaging materials,
spare parts, fuel and energy should be made simple for textile
industry and refunded on priority basis.
He said to turn around the falling exports, government should
adopt a soft approach for the five export oriented sectors and spare
them from new taxes.
Khalid Iqbal Malik said the government should also take
necessary steps to save the domestic industry against large-scale
import of textile products from neighboring countries.
He said textile industry has appealed for reduction of
gas tariff from Rs 600 per MMBTU to Rs 400 per MMBTU and fixation of
electricity tariff at Rs 7 per unit inclusive of all taxes, levies
and surcharges.
He stressed that government should give due consideration to
this appeal for bringing down the cost of doing business for this
industry.
He was of the view that addressing the issues of textile
industry and reducing power tariffs for it would facilitate the
revival of this important industry and contribute positively to
promoting country’s exports.