LAHORE, Oct 18: An extraordinary general meeting of the All Pakistan Textile Mills Association (Aptma) on Saturday urged the government to pick the freight cost (of four cents per kilo) on the import of cotton from Central Asian states and abolish sales tax on local and imported cotton.

The meeting was presided over by Aptma chairman Waqar Monnoo. Others present included provincial chairman Arif Saeed, senior vice-chairman Adil Mahmood, cotton committee chairman Yahya Salim, and polyester committee chairman Shafqat Elahi.

The meeting expressed its concern over the sharp increase in the local cotton prices, saying it would render the industry and exports unviable and lead to the closure of many spinning and weaving units. The meeting, however, noted that the country would achieve 10-10.5 million bales of cotton despite pest flare-up in some areas.

The meeting demanded that the government should import at least two million bales of cotton and help the smaller spinners in it. It said sales tax on imported and local polyester must be reduced to 15 per cent as it was the only alternative for cotton and could help exporters maintain the momentum of their exports. Further, the government need also to review duties on manmade fibres and revise downward income tax on import of cotton to one per cent from the current six per cent.

Meanwhile, the Federation of Pakistan Chambers of Commerce and Industry has convened a meeting to discuss the cotton and yarn prices on Tuesday at Karachi. The meeting has been called by FPCCI president Riaz Tata to discuss the impact of cotton and yarn rates on the country’s textile exports.