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PTEA demands release of outstanding duty drawback claims
19 Aug '11
2 min read
The Government has been called upon by Pakistan Textile Exporters Association (PTEA) to urgently release funds for reimbursing the outstanding claims under local taxes drawback as well as customs duty drawback.
PTEA Chairman Wasim Latif and Vice Chairman Adil Manzoor Ellahi stated that over the past two years considerable sums of the working capital of textile exporters have been blocked under the two duty drawback heads.
They explained that the local duty drawback scheme was introduced by the Government two years earlier, in order to encourage country's exports. The positive effects of the scheme can be seen in the export sectors' performances since then.
Textile exports for 2009-10 fiscal jumped to over US$ 19 billion from 2008-09's US$ 17 billion, and exports for 2010-11 fiscal that ended on June 30, 2011 too registering a year-on-year rise of 28.7 percent rose to US$ 24.8 billion. This corroborates the view that exports can grow if facilitated by the Government, the duo stated.
The PTEA leaders, however, regretted that the Government has failed to grasp this point and has not released the funds required to settle the duty drawback claims.
They said that as against the Textile Ministry's request for releasing PKR 40 billion under the drawback scheme in 2009-10, the Government merely released a sum of PKR 9.7 billion. Likewise, in 2010-11 too, against a request for PKR 42 billion, the Government released just PKR 7.75 billion.
This has thus resulted in blocking up of funds of the exporters, while the Government is also not releasing the customs duty drawback claims, the PTEA officials claimed. As considerable sums have been withheld under the two duty drawbacks, it has caused a financial crisis like situation for exporters, they added.
PTEA Chairman Wasim Latif and Vice Chairman Adil Manzoor Ellahi stated that over the past two years considerable sums of the working capital of textile exporters have been blocked under the two duty drawback heads.
They explained that the local duty drawback scheme was introduced by the Government two years earlier, in order to encourage country's exports. The positive effects of the scheme can be seen in the export sectors' performances since then.
Textile exports for 2009-10 fiscal jumped to over US$ 19 billion from 2008-09's US$ 17 billion, and exports for 2010-11 fiscal that ended on June 30, 2011 too registering a year-on-year rise of 28.7 percent rose to US$ 24.8 billion. This corroborates the view that exports can grow if facilitated by the Government, the duo stated.
The PTEA leaders, however, regretted that the Government has failed to grasp this point and has not released the funds required to settle the duty drawback claims.
They said that as against the Textile Ministry's request for releasing PKR 40 billion under the drawback scheme in 2009-10, the Government merely released a sum of PKR 9.7 billion. Likewise, in 2010-11 too, against a request for PKR 42 billion, the Government released just PKR 7.75 billion.
This has thus resulted in blocking up of funds of the exporters, while the Government is also not releasing the customs duty drawback claims, the PTEA officials claimed. As considerable sums have been withheld under the two duty drawbacks, it has caused a financial crisis like situation for exporters, they added.
Fibre2fashion News Desk - India
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