Key Takeaways
- APTMA requests Punjab Chief Minister Maryam Nawaz to suspend a new 0.90% infrastructure development cess.
- The levy could increase manufacturing costs and hurt exports, according to the association.
- APTMA calls for consultations with industry representatives before the tax is applied.
The All Pakistan Textile Mills Association (APTMA) has urged Punjab Chief Minister Maryam Nawaz Sharif to suspend a new 0.90 percent infrastructure development cess on imports linked to the province, warning that the levy could increase manufacturing costs and hurt exports.
APTMA Chairman Asad Shafi, in a letter dated October 9, highlighted that the Punjab Infrastructure Development Cess would raise the cost of raw materials, industrial inputs, and machinery for manufacturers operating in the province.
The association argued that Punjab-based businesses could face double taxation when imports cleared through Sindh ports are already subject to the Sindh Infrastructure Cess, adding another cost for manufacturers.
APTMA noted that textile mills import cotton, man-made fibres, dyes, chemicals, spare parts, and machinery to manufacture goods for both domestic and international markets. An additional levy on these inputs could reduce profit margins and make Pakistani exporters less competitive internationally.
The association warned that the measure could discourage new industrial investment in Punjab and create cost differences between businesses operating in different provinces.
APTMA requested a meeting with the chief minister to explain the potential impact on Punjab’s textile and apparel exports and asked for the Punjab Infrastructure Development Cess to be suspended until consultations with industry representatives and chambers of commerce have taken place.
The association also called for Pakistan Single Window to stop collecting the levy until such consultations are completed.
Maryam Nawaz was urged to intervene urgently to address the concerns raised by the textile industry.
