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PRGMEA urges Pak govt to enhance export, industrialisation

Jun '20
Pic: Shutterstock
Pic: Shutterstock
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called for steps to promote industrialisation and enhance exports in its budget proposals for 2020-21. PRGMEA urged the government to make the next budget business-friendly, lower cost of production, allow early refunds and relax import policy for industrial raw material.

In a recent statement, PRGMEA said it seeks revival of statutory regulatory order (SRO) 1125 in its true shape and reintroduce the system of no payment no refund of sales tax for the five export-oriented sectors of textile, leather, carpets, surgical and sports goods for a year.

All stuck up claims of exporters’ customs rebates and sales tax rebates should be released, it said. The apparel industry should be allowed to import fabric under SRO 492 scheme instead of the Duty and Tax Remission Scheme (DTRE) as the country’s weaving industry is unable to fulfil the demands of fashion wear with foreign buyers demanding new garments based on G-3, G4 and technical fabric material.

DTRE is quite complicated and only 2 per cent of exporters can avail of imports under that facility while 97 per cent of small and medium enterprises can be helped under SRO 492, which was in force earlier, it said.

PRGEMA also proposed that cotton yarn, the major raw material of the apparel sector, should be exempted from all duties and taxes to encourage value addition, according to Pakistani media reports.

PRGMEA suggested that the custom duty of seven per cent on import of polyester staple fibre, including a range 20 per cent anti-dumping duty, should be abolished to reduce the cost of production to compete in the market.

Accusing government agencies of harassing the textile industry, PRGMEA said social security and other taxes should be merged and deducted at the source, the association added.

Fibre2Fashion News Desk (DS)

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June 2021

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