The Karachi Cotton Association has expressed its deep concern over the decision of the Government to impose 3 percent Customs Duty, 2 percent Additional Customs Duty, 5 percent Sales Tax and 1 percent Income Tax on import of raw cotton with a view to encourage use of the local cotton crop.
The Government should realize that due to anticipated decline in cotton production again in cotton season 2018-19 especially owing to severe water shortage during cultivation period and usual factors of reduction in yield per acre, cultivation of sugarcane in the areas earmarked for cotton cultivation and supply of uncertified Cotton Seed etc, there is a gap of minimum 4.0 million bales in cotton production and mills consumption. The local textile industry is, therefore, compelled to import raw cotton from abroad to meet its requirement of basic/primary raw material and to ensure its contribution towards achieving the target of exports fixed by the Government through exports of valued added products as well as earning much needed foreign exchange for the country which is extremely important in prevailing economic situation of the country.
However, after payment of such heavy duties and taxes imposed on import of cotton, the cost of the basic primary raw material of the textile industry i.e. imported cotton will be considerably increased due to which the local textile industry will become unable to compete in the international markets. As a result of this, the exports of value added products of cotton and foreign exchange earning of the country will be badly effected.
The KCA, therefore, strongly urges upon the Government to waive all duties and taxes on import of cotton immediately in the national interest so that the local textile industry is able to export optimum quantity of value added products of raw cotton in the international market to earn valuable foreign exchange for the country and play its due role in the sustainability and growth of country's economy.-PR
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