PYMA demands cut in Customs duty to 7% on yarn

KARACHI: The Pakistan Yarn Merchants Association (PYMA) has demanded the government to reduce the Customs duty on polyester yarn to 7 per cent from the existing 11 per cent to provide relief, which will result in improved overall productivity, a statement said on Thursday.

PYMA central chairman Saqib Naseem stressed that the previous governments had taken such measures to provide the much-needed relief through textile packages, which resulted in enhanced exports.

Despite the government’s announcement in the Federal Budget 2021/22 to bring Customs duty down to 9 per cent, no measures were taken so far.

Similarly, the anti-dumping duty also needs to be abolished in the larger interest of the textile sector, otherwise the export targets will not be achieved due to likely cotton shortages and higher Customs duty, he said, while exchanging views at a meeting during the visit of the PYMA delegation to the Karachi Chamber of Commerce and Industry.

The PYMA official said commercial importers of yarn act as a bank for thousands of small-sized textile industries, as they are unable to afford costly raw materials import; therefore, the importers should be provided relief by reducing the exorbitant duties.

Naseem said that the prices of polyester yarn have risen sharply due to the rising oil prices, increase in freight charges and the global shortage of containers. As a result, the textile industry, Small and Medium Enterprises, especially power looms, were suffering due to high costs; therefore, the government should significantly reduce the Customs duty and taxes.

The PYMA official also requested the KCCI to help convince the government in bringing down the turnover tax to 0.1 per cent, as many people were finding it hard to continue their businesses with high turnover tax and limited margins.

The KCCI and PYMA have been enjoying cordial relations and it is heartening to see that many PYMA members have also discharged their duties at the KCCI’s Managing Committee from time-to-time.

“All PYMA members will go hand-in-hand with [the] KCCI so that we could collectively work towards not only resolving the PYMA issues but also other general issues of the business and industrial community,” he added.

KCCI president Muhammad Idrees said that the Karachi Chamber gives highest preference to all the issues being faced by the PYMA members, which were constantly being taken up with the relevant ministers, advisers and all the authorities at the federal level.

Finance Minister Shaukat Tarin always agrees to treat commercial importers of yarn and industries equally but the issue of higher duties on commercial importers stands unresolved, as probably the bureaucracy was misguiding the minister, Idrees said.

This pending issue has to be resolved and the commercial importers have to be provided relief by ensuring availability of a level-playing field, he added.

The PYMA delegation members also paid glowing tributes to late Siraj Kassam Teli who always gave special attention and maintained good liaison with the association.