Pakistan Clothing Department Levy 30% Yarn Export Penalty Tax

The Pakistan government proposes to impose a 15% regulatory tax on yarn exports, but Pakistan's value-added textile enterprises are dissatisfied with the government's proposed logo. They say that 30% of the regulatory tax should be levied.

Bilal Mulla, former president of the Pakistan garment and garment manufacturers and Exporters Association (PRGMEA), called for a 30% regulatory tax on yarn exports for 6 months.

"Tariff collection is a step in the right direction, but it is still not enough to ensure the proper supply of cotton yarn in the domestic market," he said.

The government should have made this decision earlier because the spinning department sacrificed costs to create profits for the country.

He added that the value-added sector provides employment opportunities for all 18 million classes of labor force, while earning a large amount of foreign exchange, while other industries are unable to create such a huge opportunity for employment.

He said that the government restricted the export of yarn by only $2 / kg, but on the other hand, the value added of the textile industry was $12 / kg.