Site Association of Industry (SAI) has showed its concern regarding the anticipated cess of one percent of annual turnover on textile manufacturers, dealers of textiles & textile allied industry.
The expenditure of this cess is unclear and the tax would be detrimental to the export industry at a time when poor law and order situation hampers order placement and industry growth.
Furthermore, Chinese and other competitors' subsidies on exports and constant increase in the cost of utilities such as electricity and gas are making the industry uncompetitive. These concerns were expressed by its Acting Chairman of the association Asad Nisar Burkhurdaria and Vice Chairman Sanaullah Abdullah in a press release.
Already collected Export Development Fund (EDF) is being misused and there are allegations of misappropriation of billions of rupees in this fund according to some newspaper reports. The government already fetches over Rs 3 billion under the head of EDF every year to develop the export-oriented industries. Recently, the Public Accounts Committee had spotted the abuse of this fund by the ministry. Both gentlemen vehemently opposed the levy of the cess and criticised the decision making quarters for their anti-industry policies.-PR