Textile Millers Ask for Competitive Tariff
Call for restoring zero-rated sales tax facility
Saad khan 
Islamabad: Asif Inam, Central Chairman of the All Pakistan Textile Mills Association (Aptma), has called for a reduction in the power tariff to 9 cents per kilowatt-hour (kWh), a decrease in the interest rate to 12%, and the restoration of the zero-rated facility to boost the textile industry's contribution to the national economy through exports, investment, and employment.
Speaking at a press conference at the Aptma office in Lahore on Tuesday, Inam highlighted the challenges faced by the textile industry. He lamented that the industry was burdened with Rs240 billion in cross-subsidies and over Rs150 billion in stranded costs. He emphasized that providing electricity at 9 cents would lead to an additional demand for over 300 megawatts and generate Rs 500 billion in revenues.
Inam also questioned the rationale behind maintaining a high interest rate of 22% when inflation had dropped to 11.8%. He pointed out that the government could save Rs3 trillion in interest payments by lowering the rate. Regarding the zero-rated facility, he criticized the government for withholding Rs300 billion in sales tax refund claims from the industry. He suggested that the government should collect sales tax at the retail stage, which has the potential to generate over Rs250 billion.
