FBR directed to put up textile issues with industry's consent

The Economic Coordination Committee (ECC) of the Cabinet has directed the Federal Board of Revenue (FBR) not to put up any textile-related issue without prior consultation with the Ministry of Textile Industry.

The ECC issued these instructions while discussing cases referred to the tariff anomalies Committee headed by FBR Chairman Abdullah Yusuf. He briefed the ECC about the procedure adopted and recommendations finalized by the tariff anomalies Committee regarding 30 cases received from different quarters.

Sources said that impact of the proposed change on domestic industry in the context of the value-addition was discussed at specific length. They said that Gujranwala Art Silk Yarn Merchants Association had asked for reduction in duty on viscose filament yarn and nylon yarn.

The Government had increased duty on viscose filament yarn and nylon yarn from 7% to 9% which the association believe would adversely affect the small cottage industry facing tough competition from the imported fabrics from China and moreover viscose filament yarn and Nylon yarn are also not manufactured locally, hence no question arises of local industry protection. They have requested to decrease the duty from 9% to 5%.