Interviews
Textile exporters demand tax refund facility extension
13 Jun '11
2 min read
Textile exporters in Pakistan feel that there would be a drastic fall in exports, if the tax refund facility which is due to end this month, is not extended further and if the outstanding claims are not paid.
Wasim Latif, Chairman and Adil Manzoor Elahi, Vice-Chairman of Pakistan Textile Exporters Association (PTEA) said in a press meet that soaring production cost is the main problem that the textile exporters are facing in the current state of economic crisis. Ending of the duty drawback facility would negatively hit the exports, they added.
The Government had introduced the duty drawback scheme under its five-year textile policy for 2009-14, alongside other incentives. According to the textile manufacturers', the scheme reaped positive results and led to a considerable rise in exports of value-added textile goods over the past two years.
The textile producers assert that the Government had promised to sustain the facility throughout the textile policy period, but in the recent budget, it has withdrawn from its promise.
They said that in the face of severe competition in the global market, Pakistani textiles are trying hard to retain their position in the midst of financial crunch. The Textile Ministry had raised a demand for Rs. 40 billion and Rs. 42 billion towards refunds for the industry during 2009-10 and 2010-11 respectively, but the Government has sanctioned only Rs. 9.7 billion and Rs. 7.75 billion.
The PTEA stated that the textile sector exported more than US$ 10 billion worth of items during last fiscal year, and has a potential to perform much better if the conditions remain positive.
Wasim Latif, Chairman and Adil Manzoor Elahi, Vice-Chairman of Pakistan Textile Exporters Association (PTEA) said in a press meet that soaring production cost is the main problem that the textile exporters are facing in the current state of economic crisis. Ending of the duty drawback facility would negatively hit the exports, they added.
The Government had introduced the duty drawback scheme under its five-year textile policy for 2009-14, alongside other incentives. According to the textile manufacturers', the scheme reaped positive results and led to a considerable rise in exports of value-added textile goods over the past two years.
The textile producers assert that the Government had promised to sustain the facility throughout the textile policy period, but in the recent budget, it has withdrawn from its promise.
They said that in the face of severe competition in the global market, Pakistani textiles are trying hard to retain their position in the midst of financial crunch. The Textile Ministry had raised a demand for Rs. 40 billion and Rs. 42 billion towards refunds for the industry during 2009-10 and 2010-11 respectively, but the Government has sanctioned only Rs. 9.7 billion and Rs. 7.75 billion.
The PTEA stated that the textile sector exported more than US$ 10 billion worth of items during last fiscal year, and has a potential to perform much better if the conditions remain positive.
Fibre2fashion News Desk - India
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
