ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has urged the Punjab government to withdraw the Punjab Infrastructure Development Cess (Amendment) Bill 2026, calling for a complete review of the levy mechanism in consultation with industrial stakeholders.
In a letter addressed to Chief Minister Maryam Nawaz Sharif, APTMA Chairman Kamran Arshad expressed “deep concerns and reservations” over the bill passed by the Punjab Assembly on May 6, 2026, stating that it has triggered shock, dismay, and distress across the business community in the province.
APTMA noted that the bill imposes a cess on “all goods manufactured, produced, consumed, imported into Punjab or exported out of Punjab at the rate of 0.90 percent of the total value of such goods.” It warned that the levy would significantly increase costs for industries in Punjab, particularly the export-oriented textile sector.
The Association emphasized that textile exporters operate in highly competitive international markets with thin margins, where prices are largely dictated by global buyers. The imposition of a 0.90 percent cess at multiple stages — import, manufacturing, consumption, and export — would erode competitiveness and potentially push exporters out of global markets, as the additional cost cannot be passed on to international customers.
“This will not only weaken the competitiveness of exports originating from Punjab but may ultimately lead to the closure of industrial units,” the letter stated.
APTMA further criticized what it termed “unbridled enforcement powers” granted to cess officers, warning that these provisions could create fear and uncertainty within the business community.
“To add insult to injury, excessive enforcement powers have been vested in cess officers, creating panic among trade and industry,” Arshad said, adding that provisions related to the establishment of pickets, check posts, monitoring stations, electronic surveillance, and penalties of up to ten times the cess amount could obstruct the free movement of goods and expose businesses to harassment and bureaucratic high-handedness.
The Association also highlighted a disparity between Punjab- and Sindh-based industries, stating that Punjab’s industrial units would effectively face double taxation. While Punjab-based businesses would have to pay cess in both Punjab and Sindh — since most import and export consignments pass through Sindh — industries located in Sindh would pay the cess only once.
“This creates an unequal cost structure and places Punjab-based industry at a significant competitive disadvantage,” APTMA maintained.
It further pointed out that Punjab has already experienced considerable deindustrialization due to high energy costs and an unfavourable business environment. The new cess, it warned, would further increase the cost of doing business, discourage industrial expansion, and deter investment, particularly in export-oriented sectors.
“At a time when Punjab needs to expand its industrial base and boost exports, such measures will increase production costs and undermine competitiveness,” the association added.
In view of these concerns, APTMA has called for the immediate withdrawal of the bill and urged the government to revisit the cess framework through meaningful consultation with industry stakeholders to ensure that policy measures do not hinder industrial growth, exports, and investment.
Copyright Business Recorder, 2026