The Karachi Cotton Association (KCA) has expressed its serious concern on the reports that the government is considering to levy duties and taxes on import of raw cotton. It may be realized that due to devastating cotton crop failure in cotton season 2015-16 and shortfall in cotton crop 2016-17 season, the local textile mills are compelled to import raw cotton from aboard to meet their requirements of basic raw material.

If any duty/tax is levied on import of cotton, the cost of doing business of the local textile mills will be considerably increased which will make them uncompetitive in the international market. The KCA, therefore, strongly recommends the Government not to impose any duty and tax on import of cotton so that the local industry could meet its requirement of shortage in raw material from abroad and ensure exports of optimum quantity of value added products of raw cotton in the international market to earn valuable foreign exchange for the country.

The KCA also strongly recommends to the Government to continue the free trading policy of cotton ie free exports and import of Cotton without any quantitative or qualitative restrictions in the coming years to safeguard the interest of all sections of the cotton trade.-PR

Copyright Business Recorder, 2017