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Pakistan: Canceling 15% Of Export Tax On Cotton Yarn

2010/7/29 11:24:00 37

According to Pakistan

Business Journal

"On July 27th, Pakistan's finance minister Abdul Hafiz Sheikh (Abdul Hafiz Sheikh) hosted the fifth meeting of the Palestinian cabinet textile Commission. After the comprehensive assessment of the arrival of new cotton, the production of cotton yarn, the trend of export and the supply of cotton yarn in the high value-added textile sector, it decided to abolish the export regulation tax of 15% cotton yarn and implement the free market mechanism to quell the dispute between the high value-added textile sector and the spinning industry.

Reported at high added value

Textile sector

In response to repeated requests, the Palestinian government imposed a 15% regulatory tax on cotton yarn exports in May 26th this year, which is valid for 2 months to ensure the production of high value-added textile sector.

Cotton yarn

Supply, but this led to strong opposition from the domestic spinning industry.

The latter insisted that the government abolish the tax so as to avoid further adverse effects on the textile industry.

Supplement:

The government has revoked 15% cotton yarn export regulation tax due to the growing hope of a high cotton harvest in Pakistan.

The fifth textile cabinet committee, chaired by Dr Abdul Hafeez Shaikh, made the decision.

The Commission assessed the current cotton production and production situation, export trend and yarn supply situation in the value-added textile industry.

After assessing the situation, they decided that the yarn export regulation tax would expire in July 26, 2010, which is similar to the decision made earlier by the Committee.

However, it is reported that before the meeting, because of the strong demand of the Ministry of agriculture officials, the export tax on yarn has been abolished.

Officials of the Department said that due to the expected cotton harvest this year, it is necessary to continue to impose a regulatory tax on cotton exports.