ISLAMABAD: Parliament was informed on Wednesday that the Prime Minister Shehbaz Sharif will soon announce a new textile policy, which will lead to the proposed 11% sales tax currently charged on locally produced cotton being abolished.
Parliamentary Secretary Zulfiqar Ali Bhatti stated while responding to a question by Sharmila Faruqi while Parliament was in session, and stated on behalf of the government that a new textile policy will be released in a couple of months from now, and the Prime Minister himself will announce the new textile policy.
Zulfiqar Ali Bhatti informed Parliament that this country is importing more cotton than it is producing domestically, and stated that he believes the Federal Board of Revenue (FBR) should abolish the 11% sales tax on locally produced cotton.
This will hopefully increase local production, and exports would eventually match levels of imports. In response to a question from Rai Hasan Nawaz, Bhatti informed the House that the government has made a National Export Board comprising representatives from all four provinces and responded by stating that new policies are being made on tariffs, e-commerce, and trade–related areas.
Bhatti further confirmed that there is no decline in the country’s textile exports, with a mere 9.3% increase. He further stated that the only impediment was that the steadily increasing electricity and gas prices have led to higher textile prices in the local market, adding that price control does not fall under their direct responsibility.
