Pakistan’s textile industry has expressed serious reservations over the proposed Punjab Infrastructure Development Cess (Amendment) Bill 2026, cautioning that it could increase the cost of doing business and negatively impact export competitiveness.
In a letter addressed to Maryam Nawaz, Chief Minister of Punjab, the All Pakistan Textile Mills Association (APTMA) urged the provincial government to reconsider the bill and consult industry stakeholders before moving forward.
Key Provisions of the Bill and Industry Concerns
The bill proposes a 0.90% cess on goods manufactured, produced, consumed, imported into, or exported from Punjab based on their assessed value. APTMA warned that the additional levy could further strain industries already facing high operating costs.
Chairman Kamran Arshad highlighted that Pakistan’s export-oriented sectors operate in highly competitive global markets where prices are largely determined by international buyers, leaving limited room to absorb extra costs. He stressed that the proposed cess would directly reduce profit margins and undermine competitiveness.
The letter also raised concerns about the definitions of goods “imported into” or “exported out of” Punjab, which are broad and could apply to goods merely passing through the province. Such provisions could complicate trade flows and create administrative challenges for manufacturers and exporters.
Administrative and Enforcement Issues
APTMA expressed apprehension over the enforcement mechanisms proposed in the bill. Powers granted to cess officers, including inspections and monitoring of goods movement, could create logistical bottlenecks for cargo transport, causing unnecessary delays.
The association warned that these measures could increase bureaucracy and compliance costs, particularly for smaller businesses.
Industry representatives emphasized that businesses are already subject to multiple federal and provincial taxes and levies, which have strained investment decisions and slowed industrial growth in recent years.
They argued that introducing an additional tax at a time when Pakistan seeks to boost exports and attract investment could be counterproductive.
APTMA’s Request to the Government
In its formal communication, APTMA requested the provincial government to:
- Withdraw the proposed amendment bill
- Engage in meaningful consultations with industry stakeholders
- Consider a balanced approach that supports both revenue generation and industrial growth
Officials from the Punjab government have not yet responded publicly to the association’s concerns.
