The recently announced budget has not been well-received by the value-added textile sector in Pakistan. The biggest setback is that, funds have not been allocated to the popular 'Drawback on Taxes and Levies Order, 2009 Scheme'.
“The scheme was supposed to be extended till 2014 but unfortunately it will now expire on June 30, 2011”, Mr Ijaz Khokhar - Chairman, Pakistan Readymade Garment Manufacturers & Exporters Association (PRGMEA), told exclusively to fibre2fashion.
In all, exporters have submitted claims amounting to Rs 28.72 billion as drawback of local taxes and levies to the apex bank of Pakistan, of which only Rs 5.3 billion have been disbursed.
Showing unhappiness with the budget, Mr Khokhar said, “The budget has been focused on tax and revenue collection. The whole textile and garment industry has not been taken into consideration. We are all waiting for the trade policy which is to be announced probably by the end of this month. Then only, will we have a clear picture about the Government's take on trade policies.”
He added by saying, “There is no clear incentive to the industry in the current budget. 90% of the budget has concentrated on revenue collection activities. The people in the value-added garment industry were expecting a lot because there was a lot of commitment in the tax policies which had been announced two years back.”
“Huge amount of exports have been lost due to lack of funds. The government is under pressure from the IMF because it is forcing to promote revenue collection activities”, he winded up this informative interview by saying.
Fibre2fashion News Desk - India
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