ISLAMABAD: In order to ensure that exporters pay dues to their employees amid industrial shutdown in the country, the Ministry of Commerce on Friday released Rs21.325 billion of Drawback of Local Taxes and Levy (DLTL) refunds to textile and non-textile sectors.
According to Adviser to Prime Minister on Commerce and Textile Abdul Razak Dawood, DLTL refunds of Rs20.5 billion for textile and Rs0.828 billion for the non-textile sector were released by the commerce ministry to support the industry and export sector.
“I am pleased to announce that DLTL refunds of Rs20.5 billion for textiles and Rs0.828 billion for the non-textile sector have been released by the Ministry of Commerce,” the adviser tweeted on Friday.
“I hope that our businessmen will now use this liquidity to look after their workers during these challenging times,” Dawood added.
Last week, the adviser stated that the government had offered a Rs100-billion support package to the industrial sector in wake of the crisis caused by COVID- 19 pandemic.
“We are continuously in contact with all major industrial sectors, including textiles and construction. After holding necessary consultations, the government will give incentives to the priority areas so as to ensure industrial revival in the country,” Dawood had said.
In December 2019, the government had settled Rs17.6 billion worth of claims on account of duty drawback of taxes and drawback of local taxes and levies pending for over a decade to textile exporters. The refunds were related to claims of 2009-11, 2014-15, 2015-16, 2016-17, 2017-18, and 2018-21.
The State Bank of Pakistan (SBP) in 2018 had notified the procedure for providing DLTL (non-textile) to the exporters of eligible products. As per the procedure, 50pc of the rate of drawback would be provided to exporters without the condition of increment in exports of goods. “The remaining 50pc will be provided only if the exporter achieves an increase of 10pc or more in exports over a fiscal year.”