Duty Drawback of Taxes 2017-18 Under Amended Prime Minister Package : AsiaNet-Pakistan

Duty Drawback of Taxes 2017-18 Under Amended Prime Minister Package

April 17, 2018 | General Business News | Share:

Karachi, April 17, 2018 (PPI-OT): Shaikh Mohammad Shafiq, Chairman Central, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has expressed grave concern about the decreasing trend of Pakistan’s Textile exports. In his statement to the press, he stated that Ministry of Commerce and Textile (Textile Division) invited feedback from stakeholders on DUTY DRAWBACK OF TAXES 2017-18 UNDER AMENDED PRIME MINISTER PACKAGE.

According to this draft procedure for implementation 50 percent of the rate of drawback shall be provided without condition of increment and remaining 50 percent of the rate of drawback shall be provided, if the exporter achieve and increase of 10% or more in exports during performance year (FY 2017-18), as compared to the base year (FY 2016-17).

He also pointed out the whole package was announced for TEXTILE but in the draft procedure stated that in case of involvement of multiple categories in a shipment, amount obtained from above will be divided into different categories in the ratio of declared values on GD form, which strongly hurts the SME’s who deals in multiple categories.

Shaikh Mohammad Shafiq also pointed out the issue of Bank Guarantee for the performance during July-December, 2017, which is difficult to obtain by the SME’s, he also suggested that the Bank Guarantee should be replaced by the undertaking of the exporter. He stated that the poor policies of the government had brought Pakistan’s most valuable sector on the verge of collapse. We time and again wrote to the Ministry for a separate distribution mechanism for the reimbursement of PM package for SME’s.

The government should diligently work on bringing around significant improvement for ease of SME’s, as the SME plays vital role to boost the economy of the country. It is observed that mostly policies are in the favour of big traders and they make the most of it, He strongly recommend while defining policies take care of SMEs too.

The government should review the textile policy in order to remove hurdles hindering exports and to enable the textile sector to attain the targets. He rejects the SBP procedure for new schemes of PM Package. The government had assured the exporters of simple procedure and paperless working, but in the new notification, the central bank has involved more paper working and lengthy process for disbursement of duty drawback claims.

Shaikh Mohammad Shafiq also pointed out the severe cash flow crunch has squeezed the productivity resulting in reduced exports as billions of rupees are blocked and demand to release all stuck-up claims of exporters immediately. Shafiq, continued to cite the high cost of doing business, saying that the industry has been competing in the global market without support or a proper plan while major competitors like India and China are utilizing all channels and resources.

For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan
Tel: +92-21-35890651-2
Fax: +92-21-35890653
Email: info@prgmea.org
Website: www.prgmea.org

Tags:

Category: General Business News