LAHORE: The 18 % sales tax was strictly pressured before the implementation of the tax, the local cotton industry is panicked about reports of GSP+ status reviews by the European Union.
This status was given by the European Union in 2014, which led to the increase in Pakistani textile exports due to privileged taxes.
In October 2023, the European Parliament to enjoy duty -free or minimal duty on European exports, unanimously for developing countries, including Pakistan, to extend the status of GSP+ by 2027 by 2027 Voted.
However, during a recent visit to the European Union delegation of Pakistan, it was announced that the economic block would review the status in June, which would raise concerns in the cotton industry.
European Union Monitoring Mission in June
Talks with a local European local representative through a related businessman revealed that although the GSP was extended by December 31, 2027, new rules and regulations are likely to be implemented before.
“GSP monitoring is a permanent process. The European Union representative said February 2 in response to a question that as part of the ongoing process, an inter -services monitoring mission is expected in mid -2025.
A businessman from the textile industry, who requested anonymity, arrested that a negative overview of the status of GSP+ could make this sector in a further crisis because, in hopes that textile. At the recent textile festival in Germany after winning the product’s export goods to Europe, textile mills have purchased large quantities of duty -free cotton and cotton yarn from abroad.
Since the import of cotton and cotton yarn is free of duty, while local cotton has an 18PC tax on the local cotton, this year, the cost of farmers, ginning and spinning sectors are importing large quantities of commodities from abroad this year.
Data released by the Pakistan Bureau of Statistics shows that the country spends $ 1.91 billion on imports of cotton and yarn in the first half of the financial year 25, which last year, during the same period. An increase of $ 0.610 billion.
Reports show that a large batch of cotton and cotton yarn is also expected during January 2025.
Cotton Generals Forum Chairman IHSanulahq says that although the total production of domestic cotton this year has been less than 50pc and 34pc than previous year production, cotton stocks have increased in ginning factories. As of January 31, at least 486,000 bales of cotton jinning factories, with 114,000 bales or 31 pcs, have fallen compared to the previous year.
He says the textile mills have purchased only 4.978 meters bales from local ginning factories during the current season, which is less than 2.7 meters of bales or 35pc than last year’s purchase during the same period.
Dawn, appeared on February 6, 2025
