Pakistan Levies 15% Regulatory Tax on Exported Cotton Yarn

According to a report on March 13, 2010 from Pakistani newspaper the Business Recorder, to deal with the shortage of cotton yarn in the domestic market, the textile commission of Pakistan Cabinet decided on Wednesday to levy a regulatory tax of 15% on all types of the exported cotton yarn. This tax rate shall take effect on the issuing date of the decision, keeping valid for 60 days. Meanwhile, SRO No.119(I)/2010 and 279(I)/2010, two regulations on the export quota limitation for cotton yarn, shall be both revoked. The levy base for the regulatory tax shall be confirmed as per the average unit price of the like products presented during three months prior to the export month of cotton yarn. The textile commission of Pakistan Cabinet claimed that the regulatory tax rate of 15% was made upon the appraisal on several factors, such as the latest output, export quantity, quantity of cotton yarn available to high value-added textile industry, and the current quota system on cotton yarn.

It was also reported that the strike, staged due to the hard access to raw materials of cotton yarn by the high value-added textile industry in Pakistan, entered into the third day, protestors beating, smashing, looting and burning on a large scale on state-owned and private properties. Now the situation has been eased off somewhat.