Pakistan Textile Exporters Association (PTEA) has acclaimed the release of Rs. 5 billion for disbursement to clear claims of duty drawback of taxes allowed under Prime Minister’s Trade Enhancement Initiatives. This is a positive move of the Government which will definitely give necessary flip to textile exports.
Chairman Pakistan Textile Exporters Association Mian Shaiq Jawed appreciated the government on release of the funds for payment of outstanding claims of textile policy incentives terming it a positive step for sustainable growth. Payment of outstanding claims of duty drawback of taxes and Levies and Technology up gradation fund schemes would help to mitigate the financial stress of textile exporters but Chairman advised for immediate payment of stuck up liquidity in sales tax, income tax and custom rebate refund regime to get maximum industrial growth and significant increase in exports as cash flow crunch which is causing major dent to country’s export oriented textile industry.
PTEA Chief stated that 46 billion rupees of textile exporters are held in sales tax refund regime; whereas 8.5 billion rupees are held on account of custom rebate and 15 billion rupees are held under income tax refund.
Terming value added textile sector as the backbone of the economy with great potential for earning foreign exchange, he urged the Government for immediate release of blocked refunds to enable the textile exporters to retain their hard earned export markets at this time of tough competition.
He further added that under sales tax refund regime, claims of Rs. 10 billion are lying unpaid under section 66; whereas claims of Rs. 19 billion are pending under differed amounts and an amount of Rs. 17 billion is pending under regular RPOs. Government, at several times, set deadlines of liquidating the long outstanding refunds of the textile industry but still huge amounts are lying in outstanding and delay in release of funds had triggered serious liquidity crunch for cash that starved textile exporters. This have adverse impact on the employment and the economy of the country as textile industry is unable to tap its potential in accordance with capacity.
