KARACHI: Pakistan Yarn Merchants Association (PYMA) has sought help of Trade Development Authority of Pakistan (TDAP) in abolishing regulatory duty on polyester yarn.
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PYMA demands removing restrictions on LCs for textile industry
KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded the central bank remove restrictions on opening of Letter of Credits (LCs) for the textile industry.
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Merchants demand waiver of demurrage, detention charges on polyester yarn
KARACHI: Pakistan Yarn Merchants Association (PYMA) on Thursday demanded the government of exempting demurrage and detention charges on stuck-up consignments due to not opening of Letter of Credit (LC).
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Merchants protest imposition of 5pc regulatory duty on polyester yarn
KARACHI: Yarn merchants have protested the levy of regulatory duty at 5 per cent on import of polyester filament yarn.
Economic Coordination Committee (ECC) of the cabinet this week approved the imposition of regulatory duty at five per cent on import of polyester filament yarn.
Pakistan Yarn Merchants Association (PYMA), while rejecting ECC decision to impose 5 per cent regulatory duty (RD) on polyester filament yarn, stated that it was primary raw material of textile industry. The association also termed that move as the cause of destruction of 800,000 power looms which were the lifeline of textile industry.
READ MORE: Pakistan slaps 5pc regulatory duty on yarn import
PYMA Senior Vice Chairman Sohail Nisar, Vice Chairman Javed Khanani, Former President FPCCI Nasir Hayat Magoon, Mohammad Usman, Saqib Goodluck, Khurshid Sheikh, Aslam Moten, Hanif Lakhany, Farhan Ashrafi, Danish Hanif, Saqib Naseem, Adnan Riaz, Khurram Bharara, Junaid Teli, Managing Committee and members strongly protested against ECC’s decision to impose RD on Yarn at Karachi Press Club, where they appealed to Prime Minister Shahbaz Sharif and Finance Minister Senator Ishaq Dar to suspend the ECC decision to save the SMEs sector of Pakistan from destruction.
“The government to issue directives not to impose RD on Yarn in the best economic interests of the country. Otherwise, SMEs will be shut down and millions of workers will be unemployed,” they requested.
READ MORE: PYMA urges government not to impose regulatory duty on yarn
PYMA leaders pointed out that there is already 11 per cent custom duty on polyester filament yarn, so with 5 per cent RD, the duty will be 16 per cent while fabric is also subject to 16 per cent duty. As a result of the imposition of RD, power looms will be locked and millions of workers will be unemployed while the 2 million households will be in poverty.
PYMA leaders questioned the government to benefit only two producers as to the wisdom of the decision to destroy Small & Medium Enterprises (SMEs), especially power looms which are associated with the textile industry. Although these two producers meet barely 25 per cent of the industry’s demand, they are not manufacturing other items.
Yarn merchants warned that they will continue their protest against the ECC’s imposition of 5 per cent RD on yarn until the decision is withdrawn. PYMA along with power looms owners of Karachi, Hyderabad, Tando Adam, Lahore, Multan, Faisalabad and Pakistan Art Silk Factories of Gujranwala were also protesting.
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“National Tariff Commission (NTC), saying that the NTC sent its recommendations without any consultation with the stakeholders which was unfair. NTC must listen to us and any decision must be taken in consultation with stakeholders”, they criticized.
They mentioned to media persons that 11 per cent customs duty was imposed on the import of Polyester Filament Yarn, which will increase to 16 per cent after 5 per cent RD.
Yarn was subject to income tax, sales tax, additional sales tax and even anti-dumping. If all taxes were combined, 50 to 55 per cent taxes were paid on import stage of Yarn, yet the imported raw material was cheaper than both local two producers. From which the monopolies and extreme profiteering of the two producers can be estimated.
PYMA leaders pointed out, “Although local producers make only 25 per cent of the total demand of Polyester Filament Yarn, the textile industry has to depend on 75 per cent of imported Yarn. They further said that in the presence of ongoing inflation, high electricity and gas tariffs, labor issues, if more tax burden was imposed on industries, unemployment will increase and the government will have to pay many times more for 5 per cent RD.”
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PYMA leaders appealed to Prime Minister Shahbaz Sharif and Finance Minister Senator Ishaq Dar to maintain the current duty structure on Yarn and requested them to ask the ECC to avoid imposing regulatory duty on Yarn.
“Instead of measures to destroy economic activities, such policies should be formulated which will promote business and industrial activities and create ample employment opportunities.”
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PYMA urges government not to impose regulatory duty on yarn
KARACHI: Pakistan Yarn Merchants Association (PYMA) has appealed Prime Minister Shahbaz Sharif and Finance Minister Ishaq Dar to not impose Regulatory Duty (RD) on imported Yarn.
The association has learnt that government was in process of imposing 5 per cent RD on import of Yarn on the pretext to discourage the import of Yarn, which was the raw material of the textile sector in Pakistan. Government should remember that we are importers of Polyester Filament Yarn, which is the main raw material in Pakistan’s textiles, and Yarn is not a finished product.
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In an emerging press conference held at Karachi Press Club, Former Chairman of Pakistan Yarn Merchants Association (PYMA) Mohammad Usman, Senior Vice Chairman Sohail Nisar, Vice Chairman Javed Khanani humbly submitted that Government was intending to impose RD while mistakenly treating Yarn as a finished item. On this occasion, Senior Vice Chairman FPCCI Suleman Chawla and former Chairman Saqib Goodluck were also present.
‘‘No Regulatory Duty should be imposed on the import of yarn to save traders from ruin. In this regard, PYMA leaders should be given an appointment so that the government can be informed about the complete facts and figures before taking any decision”, they requested.’’
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PYMA leaders also gave details of all the figures to the media in a briefing. Muhammad Usman, Sohail Nisar, Javed Khanani, Suleman Chawla and Saqib Goodluck appealed to the government to maintain the current duty structure of yarn and y not imposing RD on imported yarn to protect local textiles sector.
They Pointed out that the imposition of RD will have a direct impact on inflation in the country and worsen the situation. On the other hand, Yarn manufacturers will increase their prices according to the land cost of imported yarn, which in turn will increase the price of finished textile products and have a double effect on inflation.
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PYMA Leaders said, ‘‘This can lead to other industrial problems. He said that Yarn manufacturers could not capture the market due to low quality and high cost of production despite the huge difference in duty structure. We are of the opinion that instead of imposing RD, efforts should be made to increase effective productivity.’’
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They added that Cotton has been replaced by Yarn and the textile industry in Pakistan is mostly dependent on imported Yarn. We want to make it clear that if the government implements RD by considering Yarn as a wrongly manufactured item, it cannot be saved from destruction.
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Falling rupee to collapse industry: PYMA
KARACHI: Pakistan Yarn Merchants Association (PYMA) on Monday expressed concerns over massive depreciation of Pakistan Rupee (PKR) and fear it may collapse the local industry.
PYMA Chairman Saqib Naseem, and Vice Chairman PYMA Sindh and Balochistan Muhammad Junaid Teli in a joint statement expressed disappointment on the part of the State Bank of Pakistan (SBP) for not taking effective measures to stop the continuous increase in the value of the dollar, saying that soaring dollar risks SMEs, industries and businesses.
READ MORE: PYMA demands withdrawal of sales tax through electricity bills
PYMA office-bearers demanded the central bank to take concrete steps to stabilize the value of the rupee as businesses and industrial activities were badly affected, especially small and medium enterprises (SMEs) were facing the biggest financial losses.
Depreciation of rupee and continuous increase in value of dollar has increased the cost of doing business due to which the business and industrial community is facing severe difficulties.
READ MORE: PYMA rejects customs valuation for filament yarn
They further said that the appreciation of the dollar is most affecting businesses and industries that rely on imported raw materials to sustain production activities. Therefore, due to the increase in the value of the dollar, while the cost of importers has increased, the industries are also facing an increase in the cost of production in the form of expensive raw materials, which is also having a negative impact on exports.
Saqib Naseem, Junaid Teli demanded the State Bank of Pakistan to take practical measures to stabilize the rupee and prevent the rise in the value of the dollar to save the business and industries, especially SMEs from being destroyed, and the country to come out of economic crises and to reduce the increasing cost of business and industry.
READ MORE: PYMA seeks duty, taxes cut on yarn in budget 2022/2023
PYMA office-bearers expressed apprehension that if the central bank doesn’t play its role in stabilizing the rupee, the survival of businesses and industries, including SMEs, will be at risk.
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PYMA demands withdrawal of sales tax through electricity bills
KARACHI: Pakistan Yarn Merchant Association (PYMA) on Thursday demanded the government of immediate withdrawal of sales tax collection through monthly electricity bill.
Saqib Naseem, Chairman Pakistan Yarn Merchants Association (PYMA), Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region, has rejected the imposition of Rs 6,000 tax on small business’s electricity bills, and demanded Finance Minister Miftah Ismail to withdraw the tax, requesting that stakeholders must be consulted before imposing any tax.
READ MORE: PYMA rejects customs valuation for filament yarn
PYMA office-bearer said that imposing taxes on small businesses, shops is completely unfair, especially at a time when the rupee is constantly depreciating and the dollar is rising.
Due to which the cost of doing business has increased enormously, and it is becoming very difficult for the business community to do business.
READ MORE: PYMA seeks duty, taxes cut on yarn in budget 2022/2023
They termed the excess utility charges as a cause of cost increase and said that the business community is very worried due to the expensive electricity, and now imposing a tax of Rs 6,000 on electricity bills will kill small traders and businesses, resulting in the unemployment of lakhs of workers.
Saqib Naseem, Junaid Teli requested Finance Minister Miftah Ismail not to impose excessive burden on traders considering the current economic situation.
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In the best interest of the economy, withdraw the decision to impose a tax of Rs 6 thousand on small businesses, shops.
Otherwise, neither the business nor the economy will survive, but we will reach a crossroads where it may not be possible to revive the economy.
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Yarn merchants demand removing budget anomalies
KARACHI: Pakistan Yarn Merchants Association (PYMA) has urged the finance minister to remove anomalies in the budget 2022/2023.
In a statement on Friday, Saqib Naseem, Chairman PYMA, Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region, has drawn attention of Minister for Finance and Revenue, Miftah Ismail over anomalies in Federal Budget 2022-23.
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PYMA office bearers elaborated that Polyester filament yarn (H.S. CODE 5402.3300, 5402.4600, 5402.4700 and 5402.5200), also known as Man-Made Yarn, is the basic raw material for Pakistan’s textile industry.
The share of cotton in global fiber consumption has fallen from nearly 70 per cent back in 1960, to only 27 percent by end 2020. Its place has now been captured by synthetic or man-made yarns.
“A very large SME sector of Pakistan’s textile industry (more than 500,000 looms and knitting machines) consumes Polyester filament yarn. The commercial importers of Polyester Filament yarn act as financiers to this SME sector and entertain the requirements of this SME sector using their own capital and resources,” they said.
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Saqib Naseem, Junaid Teli added that we have seen in the past that whenever the difference in W.H.T is more than 1 per cent on Commercial Imports v/s Industrial Import, majority imports of Polyester Filament yarn shift towards industrial imports which leads to corruption and misuse of this facility and to the exchequer.
They further said that Polyester Filament yarn falls under the category of Raw Materials (SRO 1125) and in the previous budget FY 2021-22, the G.O.P imposed W.H.T at import stage 1 per cent for industrial importers and 2 per cent on commercial. However, in the Federal Budget 2022-23, the G.O.P has kept W.H.T @1 per cent for industrial imports falling under SRO 1125 whereas commercial importers shall be charged W.H.T @3.5 per cent with M.T.R and @ 4 per cent with F.T.R. Polyester filament yarn tariff already exists in the cascading system of polyester value chain & it is already on the higher side.
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Saqib Naseem, Junaid Teli requested Minister for Finance & Revenue, Miftah Ismail to kindly continue with 2 per cent W.H.T with FTR on Commercial Imports on items falling under SRO1125. Furthermore, in view of information from Reliable sources, it has been learned that the government may impose ACD & RD on Polyester Filament Yarn (H.S Code: 5402.3300, 5402.4600, 5402.4700 & 5402.5200).
Since these are basic raw materials of the Textile Industry, therefore we are requesting you not to impose any ACD & RD on these H.S Codes. We would also request you to Rationalize Custom Duty Tariff of POY (5402.4600) & PFDY (5402.4700) @7 per cent instead of present 11 per cent.
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Yarn merchants for reducing utility prices to save industry
KARACHI: Pakistan Yarn Merchants Association (PYMA) has asked the government to substantially reduce utility prices in order to save industry, especially small and medium enterprises (SMEs).
In a statement on Friday, Saqib Naseem, Chairman, PYMA, Muhammad Junaid Teli, Vice Chairman, Sind and Balochistan region, have termed the sharp rise in prices of petroleum products by Rs30, excessive power tariff and severe energy crisis as catastrophic for business and industry, and demanded from the government to save industries, especially SMEs, from catastrophe by significantly reduce petroleum prices.
READ MORE: PYMA rejects customs valuation for filament yarn
They also requested to reduce utility charges so that trade and industrial activities can be continued without any delay.
READ MORE: PYMA seeks duty, taxes cut on yarn in budget 2022/2023
In a statement, PYMA office-bearers said that the business community is worried as the SBP has already raised interest rates by 150 basis points (1.5 per cent) to 13.75 per cent, and along with the energy crisis, a sharp rise in petroleum product prices will now break the back of the business community. Therefore, any move that is detrimental to business and industry should be avoided.
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Saqib Naseem, Junaid Teli demanded the government to withdraw the recent increase of Rs 30 in petroleum products to facilitate trade and boost trade activities, and take steps to overcome the energy crisis by reducing electricity and gas prices so that business and manufacturing activities can continue unabated.
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PYMA rejects customs valuation for filament yarn
KARACHI: Pakistan Yarn Merchant Association (PYMA) on Tuesday rejected customs ruling issued for determination of value of polyester filament yarn.
READ MORE: PYMA seeks duty, taxes cut on yarn in budget 2022/2023
Saqib Naseem, Chairman Pakistan Yarn Merchants Association (PYMA) and Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region, have strongly rejected Valuation Ruling No. 1655 / 2022 Dated. 30.05.2022 which was issued on 31.05.2022 for Polyester Filament Yarn.
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PYMA office-bearers said that Director Valuation, Syed Fawad Ali Shah, had not consulted all stakeholders and refused the PYMA actual raw material price determination which was submitted earlier.
They said that fresh valuation of polyester filament yarn is totally against normal practice.
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“Pakistan Yarn Merchants Association is a Major stakeholder of Polyester Filament Yarn & demanded for immediate withdrawal of VR # 1655 / 2022 and Director Valuation should call a meeting of all stakeholders & issue New / Revised Valuation Ruling of PFY as per past practice of Valuation Department,” PYMA office-bearers demanded.
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