Govt urged to remove sales tax on local yarn purchases

FAISALABAD: Chaudhry Salamat Ali, the Patron-in-Chief of the Pakistan Hosiery Manufacturers Association (PHMA), has urged the government to remove the sales tax on local yarn purchases for textile exporters instead of imposing restrictions on yarn imports under the Export Facilitation Scheme.

He suggested that the government could ensure transparency by publishing a list of registered textile exporters, allowing only them to buy yarn without sales tax. Chaudhry Salamat said that imported yarn was not only cheaper, but also of better quality. However, the exporters purchasing yarn from the local market were required to pay an additional 18pc sales tax. This had led to a decline in local yarn consumption, putting the domestic spinning industry at risk of closure and causing potential job losses for workers in the sector, he added.

He further stated that the countries like China and Vietnam produced yarn at significantly lower costs due to the use of modern machinery and reduced electricity consumption. In contrast, Pakistan’s spinning industry relied on outdated machinery and consumed more electricity, resulting in higher production costs as compared to the global market. The imposition of sales tax had made local yarn purchases unfeasible for the exporters, who were already struggling to compete with regional competitors, he added.

Chaudhry Salamat also called on the domestic spinning industry to upgrade its machinery and enhance global competitiveness by offering yarn at prices comparable to the international market.

JI OFFERING FREE IT COURSES: The Jamaat-e-Islami has announced the launch of its “Bano Qabil” programme in Faisalabad, offering free IT courses to thousands of young individuals and assisting them in securing employment.

Registrations have begun and the programme’s inaugural ceremony will be held at the end of April, with Hafiz Naeemur Rehman delivering the keynote address. While briefing zonal leaders about the initiative, JI district ameer Prof Mehboobuz Zaman Butt emphasised that 65pc of the country’s population comprises youth, who were a valuable national asset. He urged for collective efforts beyond political, religious and sectarian divisions to ensure national progress. The event was attended by Al-Khidmat Foundation president Rai Nadeemur Rehman, Bano Qabil Director Saqib Farooq Butt and District Secretary Yasir Khara advocate.

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