FAISALABAD

Increasing Gas Infrastructure Development Cess by 200 percent in the federal budget is likely to spell disaster for textile industries and oust them from the international export arena, said the All Pakistan textile Processing Mills Association.

APTPMA Chairman Sheikh Muhammad Ayub stated that the value-added and export-oriented industries had been instrumental in earning valuable foreign exchange to the tune of billions of rupees while the hike would increase the cost of production.

Elaborating through statistics,  Sheikh Ayub stated that the enhancement of GIDC by 200 percent from Rs100/MMBTU to Rs300/MMBTU will increase gas prices for industrial consumers about 30%, making the products uncompetitive and unviable in the international and domestic markets.

He reiterated that in view of ongoing energy crisis faced by the textile processing industry would cause difficulties for the industries. They appealed to Prime Minister Muhammad Nawaz Shairf and Finance Minister Muhammad Ishaq Dar to withdraw the decision of enhancement in GIDC announced in the budget.

PROPOSALS FOR PUNJAB BUDGET: The Faisalabad Chamber of Commerce and Industry (FCCI) has completed its recommendations for the Punjab budget 2014-15 and forwarded to the Punjab government after due consultation with leading business and industrial associations of the city.

These proposals were discussed in a meeting which was also attended by representatives of the APTPMA, PHMA, Anjuman-e-Tajran City, Anjuman-e-Tajran Aminpur Bazaar, Faisalabad Cloth Board, Industrialists Association of PISC, Powerlooms Association, Dyes and Chemicals Association, Sizing Association, Instalment Association in addition to the Director Excise and Taxation Faisalabad.

Speaking on the occasion, FCCI president Engr Suhail Bin Rashid informed that majority of the associations had rejected the survey, categories and valuation tables for property tax and most of them had suggested 25 percent increase in the existing rate of property tax without indulging into the intricacies of classification and valuation. However, some associations said that due to slump in local market this rate should not be increased more than 10 percent.

He said that the APTPMA had demanded a separate category for industrial units housed in various rating areas of the city. They said that there should be only three categories (i) up to 2 acres (ii) from 2 to 10 acres and (iii) above 10 acres. The warehouses and offices of the industrial units should also be considered part of the factory and industry rate should be applied to these premises.