The All Pakistan Textile Mills Association (APTMA) has urged Punjab Chief Minister Maryam Nawaz to suspend a new infrastructure development cess on imports linked to Punjab. The association warned that the levy could increase production costs and affect Pakistan’s export competitiveness.
In a letter dated October 9, APTMA Chairman Asad Shafi highlighted concerns about the Punjab Infrastructure Development Cess. The new levy stands at 0.90% and applies to imports associated with the province.
APTMA said the additional charge would increase expenses for manufacturers importing raw materials, industrial inputs and machinery. These items are essential for maintaining production across Punjab’s manufacturing sector.
The association believes the new charge could place further financial pressure on industrial businesses. It has asked Maryam Nawaz to intervene and review the decision to protect manufacturers and exporters.
APTMA Raises Concerns Over Double Taxation
APTMA has warned that Punjab-based businesses could face double taxation on imported goods. Many shipments enter Pakistan through Sindh’s ports, where the Sindh Infrastructure Cess already applies.
According to the association, collecting another levy in Punjab on the same goods would create an additional financial burden. This could raise costs for manufacturers that rely on imported materials for their operations.
Textile mills import several essential items to produce goods for local and international markets. These include cotton, man-made fibres, dyes, chemicals, spare parts and industrial machinery.
APTMA said the additional levy could reduce manufacturers’ profit margins. Higher input costs could also make Pakistani products more expensive in international markets.
New Cess Could Affect Textile Exports
The association has expressed concern about the potential impact on Pakistan’s textile and apparel exports. It warned that rising production expenses could weaken the ability of exporters to compete globally.
Pakistan’s textile industry relies on imported inputs for various stages of manufacturing. Any increase in these costs could affect production budgets and business decisions.
APTMA also cautioned that the new levy could discourage industrial investment in Punjab. Businesses considering new factories or production expansions may reconsider their plans if operating costs continue to rise.
The association further pointed to possible differences in costs between provinces. It argued that additional charges could place Punjab-based manufacturers at a disadvantage compared with businesses operating elsewhere.
These concerns have prompted APTMA to seek immediate action from the provincial government. The association wants authorities to consider the potential effects on industrial activity and export performance.
APTMA Requests Suspension and Industry Consultation
APTMA has asked Maryam Nawaz to suspend the cess on industrial imports. It has also called for consultations with industry representatives and chambers of commerce before proceeding further.
The association wants Pakistan Single Window to stop collecting the levy until these consultations take place. This would give relevant stakeholders an opportunity to explain their concerns and discuss possible solutions.
APTMA has also requested a meeting with the Punjab chief minister. During the meeting, it plans to outline the potential consequences for Punjab’s textile and apparel exports.
The request places the new import levy under scrutiny from the textile industry. The provincial government’s response will determine the next steps regarding APTMA’s demand.
In other related news also read Maryam Nawaz Inaugurates Jinnah Institute of Cardiology
For now, the association is seeking relief from the additional cost. It maintains that consultation with industrial stakeholders is important to assess the levy’s impact on manufacturers and exporters.
