MCCI Demands Withdrawal Of Import Duty On Raw Cotton

MCCI Demands Withdrawal Of Import Duty On Raw Cotton
President of Multan Chamber of Commerce & Industry (MCCI) Fareed Mughis Sheikh has endorsed the stance of the APTMA regarding withdrawal of duty on the import of raw cotton to help run more than 400 textile mills because Pakistan had produced 40% less cotton than requirement.
Fareed Mughis Sheikh has expressed concern over the callous attitude of the government for increasing the duty on import of raw cotton from 2% to 3% which along with the additional duty of 1% had increased the total import duty to 4%.
“This has been done at a time when the textile industry is reeling from the effects of a total crop failure in the country. Production of cotton declined by almost 35%,” he said.
Mr. Sheikh said that the APTMA had been pleading with the government to remove import duty altogether on cotton so that the textile industry could operate in an efficient manner. But instead of accepting reality, they have chosen to increase duty and further exacerbate the industry’s plight, he lamented.
“It is not possible for the textile industry to continue to operate in these conditions and contribute to higher exports and provide yarn to the domestic downstream if they are made to pay such exorbitant amount of duty on its basic raw material,” he argued.
The MCCI president said Pakistan had become a net importer of raw cotton and even then the textile industry was trying to remain competitive while contributing to the national exchequer alongside providing millions of jobs. He demanded that if they had to import over 3 million bales due to crop failures then import duty must be abolished.