Aptma demands lifting moratorium on new gas connections

KARACHI: The All Pakistan Textile Mills Association (Aptma) has urged the government to issue notification for removal of moratorium on the new gas connections to industries and direct tax authorities to release all pending refunds of sales and income taxes.

In a statement issued on Monday, Tariq Saud, chairman of Aptma, demanded Prime Minister Nawaz Sharif and Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi for earliest issuance of notification for removal of moratorium on the new gas connections to the industries.

He said that with the import of RLNG and removal of bottlenecks, the availability of gas in province of Punjab has increased which has partially improved their industrial activity.

“Lifting of moratorium on new industrial gas connections in the country will greatly help in improving the industrial activity and creation of employment,” the chairman said.

The Aptma chief also said that the textile industry exports were remained under pressure in quantity terms due to a partial implementation of the 8-point textile industry package.

The high cost of doing business and an unrealistic value of the local currency has also played a role in this regard.

Non-payment of Rs200 billion outstanding refunds on account of sales tax, income tax, rebates and previous policy initiatives is yet proving a major stumbling block in smooth running of the industry, he added.

He said the textile industry is unable to utilise resources due to sustained losses earlier and a liquidity shortage now a major hurdle to produce exportable surplus, while the government is reflecting the stuck up refund amounts in its revenue account, which is not a fair practice, he said.

He urged the government to liquidate pending sales tax refunds so that funds, presently lying unproductive should be used as a working capital for industrial operations in the best national and economic interests.

Complete withdrawal of Gas Infrastructure Development Cess (GIDC) and Electricity Surcharges from entire textile chain, Zero-rate all direct and indirect exports across all value chain with effect from July 1, July 2016, provide five percent Drawback of Local Tax and Levy (DLTL) against exports to all textile value chain to remove incidentals of taxes, cess, levies and duties on all textile exports.

Furthermore, safeguard domestic commerce from under invoiced imports by levy of 15 percent regulatory duty on synthetic yarn and fabrics.