LAHORE - While rejecting the passage of the Finance Bill 2009-10, aiming at burdening the industry further amid an unprecedented financial and energy crisis, All Pakistan Textile Mills Association (APTMA) has deplored that governments actions are not matching with its loud words for the textile industry turn around. Referring to the Prime Minister Yusuf Raza Gilani speech at the launching ceremony of the Infrastructure Development of the Pakistan Textile City at Port Qasim Industrial Area, where Prime Minister spoke high of the textile industry contribution towards the countrys economy, Chairman APTMA Tariq Mehmood said the federal budget 2009-10 is a total negation of the acknowledgement of the role of textile industry on the part of the Prime Minister. Especially, he said, the provisions of Finance Bill 2009-10 are not textile industry friendly at all, as it was being presumed in pre-budget scenario. Provisions like reintroduction of 0.5% minimum tax on domestic sales, 1% withholding tax on import of textile and articles, 16% Federal Excise Duty on banking and insurance services besides withdrawal of exemption of 16% sales tax and 4% withholding tax on machinery and parts in the Finance Bill 2009-10 are nothing but last straw on industrys back. According to him, reintroduction of minimum tax on domestic sales would invite unavoidable liquidity problem, which is already reached to the alarming level. He said the textile industry was facing negative generation of funds due to unaffordable mark up rate on the one hand and acute shortage of energy supply coupled with unimaginable power tariff for industry on the other. Similarly, said Chairman APTMA, continuity of 1pc controversial withholding tax on import of essential raw material (cotton & polyester staple fibre) for industry should be withdrawn immediately. He said this withdrawal would enable the industry to procure some 3m cotton bales annually from outside world in order to meet the shortage and to compete with regional competitors in international market to earn foreign exchange for the country. On imposition of 16% FED on banking and insurance services, Chairman APTMA said such advance taxes would play havoc with the growth of the industry in already existing adverse circumstances and needed to be withdrawn immediately. Chairman APTMA also pointed out that the government should not withdraw sales tax and withholding tax exemption on machinery and parts, as it would add cost besides liquidity problem for the industry. Chairman APTMA Tariq Mehmood expressed the hope that the government would not only amend the Finance Bill 2009-10 immediately but also ensure two years moratorium besides special mark up and energy tariff for textile industry in upcoming textile policy.