Textile sector to protest theft surcharge

LAHORE: Textile industry will go on a one-day strike to protest theft surcharge that includes power theft by other consumers, inefficiencies of transmission and distribution companies and corruption, a statement said on Wednesday.
“Textile industry has zero theft or line losses and they pay their bills promptly,” said chairman All Pakistan Textile Mills Association (APTMA) S M Tanveer. He said the power rates in the competing economies averages Rs8 per unit while rates charged from Pakistani industry are Rs14.50, adding that the surcharges on electricity bills have made it unviable.
“The impact of these surcharges is around Rs100 billion per year on the industry,” he said.
In addition, the industry, despite being zero rated is not refunded many taxes paid at different level of production processes. The impact of these taxes is Rs65 billion per annum. The detail of these non-refundable taxes has been provided to the economic planners, he said. He said GIDC is another burden of Rs35 billion slapped on the industry.
The chairman said the industry has to bear additional burden of over Rs185 billion that is 15 percent of its turnover. “This is the reason that the exports of textiles are regularly declining,” he said, “50 percent of the mills are operating 60 percent capacity and 25 percent are closed.”
He said if the grievances of the industry are not addressed after one day strike, the APTMA would announce further course of action. Meanwhile, “We are still trying to engage the government in meaningful dialogue,” he concluded. The strike will take place on August 07, 2015