KARACHI: The Karachi Cotton Association (KCA) has expressed its deep concern over the levy of 3.0 percent customs duty, 1.0 percent additional duty and 5.0 percent sales tax on import of cotton.
Keeping in view the devastating cotton crop and expected shortfall in cotton crop for 2016-17 season, the local textile mills are compelled to import raw cotton from aboard to meet their requirements of basic raw material.
“However, due to levy of customs duty and sales tax on import of cotton as mentioned above, the cost of doing business of the local textile mills has considerably increased, which makes them uncompetitive in the international market,” a statement said.
In order to make the local textile mills competitive in the international market and ensure their due role in the growth of country’s economy, the KCA strongly urges upon the Government to waive all duties and taxes on import of cotton immediately so that the local industry could be able to meet its requirement of shortage in raw material from abroad and ensure exports of optimum quantity of value added products to earn valuable foreign exchange for the country.