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APTMA demand for duty exemption on machinery rejected

ISLAMABAD (February 26 2003) : Wrecking all expectations of the All Pakistan Textile Mills Association (Aptma), the Central Board of Revenue (CBR) has rejected outright a major demand of the textile industry for allowing it total exemption of custom duty on the import of machinery and equipment.

In this regard, the tax authorities on Tuesday handed over their reservations to the Federal Textile Board (FTB).

The CBR was of the view that the imposition of 5 percent duty on the import of machinery for agricultural and other value-added industries in 2001 was a well-thought decision and the scope of SRO 439(I)/2001 could not be further extended.

Sources said that the textile sector is already enjoying handsome concessionary rate of duty on the import of machinery, equipment and apparatus, which could not be brought down to zero percent.

The reduction in duty would drastically effect the revenue targets set by the tax authorities, they added.

The concessionary rate of duty is applicable on the machinery and equipment used in producing yarn from cotton and man-made textile material, woven silk and its value-added products, cotton and blended woven fabrics or their products, articles of apparel and clothing accessories, man-made staple fibre, woven fibre of synthetic staple fibres, carpets and other textile floor covering, knitted or crocheted fabric, automobile textile, blankets and travelling rugs, bed linen, table linen, toilet and kitchen linen etc, curtains (including drapers) and interior blinds, curtains or bed valances and dying, printing and finishing.

The CBR has conveyed to the Federal Textile Board that the amendment in SRO 439(I)/2001 could not be made as suggested by various textile associations.

The All Pakistan Textile Mills Association (Aptma) had been demanding of the government to withdraw duty on the import of textile machinery.

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