The Pakistan Yarn Merchants Association (PYMA) has described the federal budget as textile-friendly. PYMA Chairman Rafiq Ebrahim, in a statement issued here on Wednesday, said the zero-rated sales tax on the entire textile chain and rationalisation of duties on man-made fibres would help the industry achieve new heights. He said the abolition of customs duty on imports of spare-parts for plants and machinery, cut in bank rates, and reduction in duty on over 1,000 items would help in the growth of capital market.
He hailed the decision to extend the temporary importation scheme for exporters under SRO 410 up to June 30, 2006 under the directive of the commerce ministry.
Rafiq expressed dismay over the increase in duty on viscose yarn from 5 to 7 percent, and suggested that the protection provided to the viscose yarn sector should be reviewed.
He also opposed the levy of 0.1 percent withholding tax on cash withdrawals of Rs 25,000 and above from banks, saying it would have negative impact on business of small and medium enterprises (SMEs).-PR