Pakistan Government to Levy 25% Regulatory Tax on Cotton Yarn Export

According to a report on May 5, 2010 from Pakistani newspaper the Business Recorder, the Chairman of the Pakistan Textile Exporters Association (PTEA), Mr. Mukhtar, has told the media that under the strong request from the high value-added textile industry, the Pakistani Government agreed in principle to levy a regulatory tax at 25% on the export of cotton yarn to curb the excessive rise in domestic price of cotton yarn, and to meet the production needs of textile enterprises.

Affected by power cuts, shortages of raw materials, rising costs and other factors, many textile enterprises in Pakistan have got into predicament, said Mr. Mukhtar.

It is reported that the Pakistani Government will officially announce in several days upcoming the taxation decision above mentioned.