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Pakistan:Pakistan Budget 2005-06, proposals for textiles,
cotton and allied sectors |
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2005-6-8
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The Budget 2005-06 was today presented by Mr. Omar Ayub Khan, Minister of State for Finance in the National Assembly of Pakistan.
Following are the highlights of the budget proposals focusing textiles, garment, cotton, fibre, raw materials, furniture, yarns, leather goods, sports goods and machinery sectors.
• Textile industry is the backbone of exports sector (cotton, yarn, cloth and garments)
• Private sector investments in textile industry up at $ 4 billion
• Textile exports touch the $10 billion mark
• Cotton output up by 28.45%
• Production of cotton yarn up18%
• Brand Cotton of Pakistan to be the symbol of the best cloth in the world
• Ginned cotton up by 45%
• Custom duty on basic raw materials for chemical, textiles, furniture and soap industry are being exempted from duty or is being reduced
• GST zero-rating to entire chain of textile sector proposed
• Zero rating scheme also proposed for carpet, leather, surgical goods and sports goods industries
• Introduction of zero rate scheme also applicable to their inputs of utilities at the loss of tax revenue from textile, leather, carpet, surgical goods and sports goods sector, thus, where retail annual sale exceeds rupees fifty lac in case of cloth, garments, leather goods, carpets, sports goods and surgical goods sectors, it is proposed to levy 3% tax inclusive of 1% income tax which will be final tax
• Machinery for ginning industry in the textile chain proposed to be exempted from customs duty. Similarly duty on presses for ginning industry is also proposed to be withdrawn
• In addition, machinery and equipment for setting up, balancing, modernization or replacement of industry are proposed to be kept at 5% duty, and duty on their parts is being brought to the same rate
• Opening of L/Cs on arrival of imported machinery may be allowed up to 30th June 2005
• Import and supply of raw materials and parts used in manufacturing of plant and machinery may be zero-rated for sales tax purposes, proposed
• Under rationalization of Sales Tax on zero-rating imports and supplies consumed by textile, carpets, leather, surgical and sports goods in export sectors is being revised upward by 0.25%
• Zero Duty for raw materials to manufacture carpets, textile, leather, surgical and sports goods at import stage from Customs duty
• Reduction in duty on man made fibres and raw materials used their production
• Karachi Textile City is being established
• Garments cities for Lahore and Karachi
Download general features of Budget 2005-06 |
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