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PRGMEA for waiver of taxes until payment; demands DLTL extension
Sep '11
Spokesman of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has said the government should waive other taxes until the stuck up claims of readymade garments exporters are not paid to lessen financial burden on them.

He has criticized government for delaying release of stuck up claims worth Rs 23.42 billion under the Duty Drawback of Local Taxes & Levies (DLTL) Scheme.

He said the funds allocated for payment of stuck up claims of readymade garment exporters, as informed to the National Assembly Standing Committee on Textile, are insufficient and it would take years and years before full and final payment to the exporters against their outstanding claims.

The spokesman said the readymade garments exporters have already been denied their refunds since early this year and present arrangement would further be destructive to the Small and Medium Enterprises (SMEs) of readymade garment industry.

According to him, the State Bank of Pakistan has cleared only Rs 5.3 billion so far out of total claims of Rs 28.72 billion submitted by exporters until fiscal year 2011.

It may be noted that the government had announced DLTL Scheme under the first-ever-five-year Textile Policy 2009-14, setting $ 25 billion exports target in 5 years. While encompassing a broad based agenda including technology up gradation, infrastructure development, skill development, and fiscal measures for ailing textile industry along with removal of regulatory bottlenecks, the government has left the agenda half-achieved with blockage of claims of huge amounts.

PRGMEA spokesman said the government should pay charges for undue delay in payment of stuck up claims, as the entrepreneurs are charged with penalties in case they pay taxes by delay. He said process of payment to the exporters is unnecessarily slow and the association has received complaints from many member companies on this count.

He said the government policymakers, in recent interactions, were of the view that the association that funds have been released but the SBP staff is suggesting otherwise.

He has urged the government to not only release the stuck up claims forthwith but also announce continuity of the DLTL Scheme to facilitate the exporters in finalising fresh contracts with international buyers.

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

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