Lahore: The Pakistan Hosier Manufacturers and Exporters Association (PHMA) on Thursday has welcomed the governments initiative in the next financial year’s budget of reducing sales tax from 2pc to 1pc on raw material supplies for five export industries.
PHMA chairman Adil Butt lamented about the power supply situation as the industry currently was facing ten hours of loadshedding daily and demanded that they be provided 24 hours uninterrupted supply. He showed reservations over the inadequate funds assigned for duty drawback claims of exporters and only Rs4b has been disbursed against outright claims of over Rs24b.
He pleaded the government to rescue the industry from full scale depravation as it was going through a major financial crunch and requested the PM Nawaz Sharif to intercede on their behalf and ask the FBR to release their outstanding duty drawback claims on a priority basis.
Butt said “When reservations were raised during sixth meeting of the Federal Textile Board last week, officials of the Finance Division assured textile exporters that funds will be released for duty drawback from the budget allocations as well as supplementary grants based on the claims submitted in the State Bank of Pakistan.” He went onto mention that the government should increase the time period for the drawback tax facility announced under the PM export package till next year.
