The Pakistan Textile Exporters Association (PTEA) has urged the government to withdraw protection taxes and tariffs on raw materials input from the domestic textile industry, while allowing raw materials and customs tax rebates to help domestic textile companies reduce production costs and increase their global competitiveness.
Rana Arif Tauseef, president of PTEA, said that filament yarns cannot be tax refunded, and domestic production materials are subject to heavy protection taxes and 8% tariffs, which are detrimental to the production of textile exports and affect domestic textile exports.
He argued that compared with regional competitors, Pakistan’s textile exporters did not have a fair competitive environment because production inputs and raw material prices were higher than other regional countries. As a result, their production costs increased, resulting in their products in the global market. Lack of competitiveness.
He further pointed out that their regional competitors in China, Sri Lanka, and India bought raw material inputs at relatively low prices, so their production costs are still very low, which allows them to sell products at lower competitive prices. Global buyers.
Mr. Tauseef said that in the era after globalization and liberalization, competition has become more intense and exporters need to minimize production costs in order to maintain their survival and development.
Most other exporting countries’ governments provide exporters with tax, exemption from taxes, tax deductions, and zero production costs. For example, India provides protection tax rebates for exporters, while China provides low-cost production inputs.
Not only raw materials, but also the import costs of export textiles in these countries are significantly lower than in Pakistan. Therefore, exporters in these countries provide overseas buyers with competitive prices.
On the contrary, Pakistan’s textile exporters are heavily taxed on protection and are taxed. This is only beneficial for importers of raw materials and domestic production inputs, such as filaments and chemical manufacturers.
Rana Arif Tauseef, president of PTEA, said that filament yarns cannot be tax refunded, and domestic production materials are subject to heavy protection taxes and 8% tariffs, which are detrimental to the production of textile exports and affect domestic textile exports.
He argued that compared with regional competitors, Pakistan’s textile exporters did not have a fair competitive environment because production inputs and raw material prices were higher than other regional countries. As a result, their production costs increased, resulting in their products in the global market. Lack of competitiveness.
He further pointed out that their regional competitors in China, Sri Lanka, and India bought raw material inputs at relatively low prices, so their production costs are still very low, which allows them to sell products at lower competitive prices. Global buyers.
Mr. Tauseef said that in the era after globalization and liberalization, competition has become more intense and exporters need to minimize production costs in order to maintain their survival and development.
Most other exporting countries’ governments provide exporters with tax, exemption from taxes, tax deductions, and zero production costs. For example, India provides protection tax rebates for exporters, while China provides low-cost production inputs.
Not only raw materials, but also the import costs of export textiles in these countries are significantly lower than in Pakistan. Therefore, exporters in these countries provide overseas buyers with competitive prices.
On the contrary, Pakistan’s textile exporters are heavily taxed on protection and are taxed. This is only beneficial for importers of raw materials and domestic production inputs, such as filaments and chemical manufacturers.
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