Textile Industry Asks Maryam Nawaz to Cancel New Import Tax

The All Pakistan Textile Mills Association (APTMA) has implored Punjab Chief Minister Maryam Nawaz Sharif to put on hold a recently introduced 0.90 percent infrastructure development cess on imports originating from within the province. The levy, according to APTMA Chairman Asad Shafi, could escalate manufacturing expenditures and impede exports in a letter dated October 9.

APTMA contended that the Punjab Infrastructure Development Cess would inflate the price of raw materials, industrial inputs, and machinery for local manufacturers. Furthermore, the association cautioned that businesses situated in Punjab might be subjected to double taxation since imports passing through Sindh ports are already subject to the Sindh Infrastructure Cess.

If the Punjab levy is applied to the same goods, it would impose an additional cost on manufacturers. The APTMA highlighted that textile mills import cotton, man-made fibers, dyes, chemicals, spare parts, and machinery to manufacture products for both domestic and international markets. The additional levy on these inputs could diminish profit margins and make Pakistani exporters less competitive on the global stage.

The association also expressed concern that the measure might dissuade new industrial investment in Punjab and create disparities in costs between businesses operating in various provinces. APTMA solicited an urgent intervention from Maryam Nawaz to suspend the cess on industrial imports and recommended that the Pakistan Single Window cease collecting the levy until consultations with industry representatives and chambers of commerce are completed.

The association further requested a meeting with the chief minister to elucidate the potential impact on Punjab's textile and apparel exports.