Draft Textile Industry Act: provision to levy cess on textile sector withdrawn

The Ministry of Textile Industries has withdrawn the provision of levying cess on textile sector under the draft ''Textile Industry (Development, Promotion and Standards) Act'' on the recommendations of all the stakeholders, it is learnt.
Informed sources in the ministry said that the feedback received from the stakeholders on the draft law was being reviewed by the ministry and one of it''s clauses pertaining to levy of cess has been modified on the request of the stakeholders. A final meeting on the proposed law will be held within a month.
Ministry of Textile Industry has taken initiative to bring about necessary legislation for the textile industry. In this regard, the draft of Textile Industry Act is being finalised. The proposed law envisages compliance by various sub-sectors of the textile industry to set a uniform standard through a reconstituted Federal Textile Board having necessary powers.
Sources said that the importance of the proposed legislation can be judged from the comprehensive coverage of the textile sector, including the production and use of fibers and filaments, machinery and parts, dyes and chemicals etc. It will also cover allied textiles industry including designers, retail chains and brands.
Another important objective to be achieved through the legislation would be provision of legal cover to all the development initiatives taken by the ministry aimed at increasing growth and expanding the textiles sector through infusion of skills, infrastructure development, etc. The law will also provide for gender balance in textiles employment, cover tariff rationalisation, branding and measures to reduce the cost of doing business.
The new law will operate through the reconstituted Federal Textiles Board, which will have representation from industry and public sector. In addition to guiding the standards setting exercise, the Board will also exercise oversight to ensure implementation of the initiatives and smooth operations of the industry through availability of all inputs at fair price.
The proposed law will require the Board to oversee proper utilisation of incentives schemes and facilities provided by the government at any point in time. It will, therefore, be responsible for proper and economical utilisation of resources provided by the government to the textiles sector. To avoid misuse, the Board will have the authority to conduct audits and award penalties.
For carrying out the functions, transparent rules will be framed, which guide both the Board and the private sector representing the value chain. While drafting the law intensive consultations were held with the stakeholders. Presentations were also given in Multan, Faisalabad, Lahore and Karachi and on their recommendations the draft law has been modified, sources added.