LAHORE: Input Output Coefficient Organisation (IOCO) has assured All Pakistan Textile Mills Association (APTMA) leadership of revising duty drawback rates on exports, updating them according to the current incidence of duties and taxes in order to increase exports.
In this regard, IOCO Directorate General Director at North Zone Sadia Munib during a meeting with APTMA office bearers and members at APTMA House here on Thursday acknowledged that the existing duty drawback notification was issued about 11 years ago in 2009 and since then, whole tariff rates have altogether changed and required an immediate update.
ICO Additional Director Dr Mumtaz Ali was also present on the occasion.
APTMA Punjab Chairman Abdul Rahim Nasir, APTMA Punjab Vice Chairman Kamran Arshad and APTMA Punjab Executive Director Raza Baqir presented the issues relating to exports of textile products and the need for an immediate upward revision of duty drawback rates to relieve exporters from the current economic crunch.
Regretting that duty drawback is not being offered at current levels, APTMA’s leadership urged the government to amend rules, simplifying tax laws and automate business processes so that the SME sector of the value-added textile sector is facilitated and exports are enhanced.
The APTMA Punjab chairman observed that small businesses are at risk of losing billions in untapped export potential due to market frictions such as lack of transparency and related non-tariff measures.
He cited the high costs of doing business, adding that the industry has been competing in the global market without the support or a proper plan while major competitors like India and China had been utilising all channels and resources.
Agreeing to the issues confronting textile sector exports, the IOCO Director Sadia Munib assured the APTMA chairman that IOCO is looking into the matter.
She said the Federal Board of Revenue (FBR) has established the IOCO Directorate General to constantly evaluate rates of duty drawbacks on exported goods and rates of input-output goods in liaison with the private sector.
“The Pakistan Customs has revised upwards rates of duty drawback for various sectors in accordance with the factual determination by IOCO after revision in valuations of input items under the government’s vision of “Make in Pakistan” to increase the global competitiveness of products and contribute towards export-led growth,” she added.
She said that IOCO was working to simplify the export scheme, providing new incentives for the business community to help the export industry keep abreast of latest developments and trends in relevant technologies.
She also agreed to the fact that better integration with the global value chain and increased exports are important for Pakistan’s economic development through job creation, especially for youth and women.
