Pakistan to allow duty-free imports of cotton in favor of textile industry

Release time:

2019-01-26

In recent years, due to various reasons, Pakistan's cotton planting area has gradually decreased, resulting in cotton production in short supply. Therefore, in order to meet the needs of Pakistan's textile industry and other fields, Pakistan will allow the import of cotton duty-free.

Recently, the Minister of Finance of Pakistan presided over the meeting of the Economic Coordination Committee to study the tax rebate of about 36 billion rupees proposed by exporters, and allow cotton to be imported duty-free, while requiring foreign exchange to pay vehicle import duties.

The textile industry is the most important pillar industry and the largest export industry of Pakistan. In recent years, Pakistan's textile industry has been plagued by problems such as insecurity, high operating costs, declining product competitiveness and sluggish international market demand, and its development has encountered bottlenecks.

In order to meet the needs of the textile industry, ECC decided to approve the exemption of customs duties, surtax and sales tax on imported cotton from February 1 to June 30, 2019. The aim of this initiative is to support the textile industry, especially the export sector, to have an adequate supply of cotton. According to relevant reports, Pakistan has been a net importer of cotton since 2001. Pakistan's domestic cotton is mainly medium and long staple fiber. In order to transform high value-added finished products, local textile manufacturers need to import a large amount of high-quality cotton to produce high-count yarn products. In the past, Pakistan's cotton imports have been duty-free. By fiscal year 2014/15, the duty-free policy was canceled and 1% tariff and 5% sales tax were levied. Cotton imports before this tax exemption are subject to 3% customs duty, 2% surcharge and 5% sales tax.

Global Industrial Textile Industry Innovation Taps "Urban Life"

Return to List

New regulations on textile export issued-Ningbo Customs calls on enterprises to pay attention to and master the new standard in time

More information