KARACHI: Commenting on slapping enhanced duties of the US on products of China, Canada and Mexico; Pasban Democratic Party PDP Chairman Altaf Shakoor here Sunday asked the government of Pakistan also to protect its own crops and products by rationalising taxes and duties.
He said the cotton and yarn sector in Pakistan is a glaring example of giving incentives of imported cotton and yarn at the cost of locally produced cotton. He said no other country in the world allows import of cotton free from duties and sales taxes. He said that imported duty-free and sales tax-free yarn is being sold in the domestic market and our Pakistani products could not compete with them.
He said that the All Pakistan Textile Mills Association (APTMA) has been demanding immediate restoration of the Export Finance Scheme (EFS) to its pre-Finance Act 2024 form that allowed the sales tax exemption and zero-rating on all local supplies used for export manufacturing. Pakistani mills are facing tremendous losses and closure due to misuse of the EFS, under which import of cotton and blended yarns are exempted from sales tax and duties.
He said local cotton farmers are being punished to make room for the imported cotton and yarn. This is a rare example of promoting foreign goods on local taxpayers’ money.
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