Pakistan Textile Exporters Association (PTEA) has shown their deep concerns about the payment of the announced incentives under the prime minister package for the textile industry in Pakistan. In a statement issued by the chairman PTEA, said is that “only Rs4 billion were earmarked out of Rs180 billion PM’s export package. Moreover, sales tax and custom rebate refund claims of Rs200 billion are creating serious liquidity crunch for the textile industry and resulting in an ultimate decline in the exports.”
According to the officials the delay in the deliver y of the committed amount the exports in the textile industry has faced a drastic result. The current situation of the textile industry is a clear example of the non-serious attitude of the government, towards the development of the country and the stability of the economy of Pakistan. Giving a comparison of textile exports under the prime minister’s export package, the chairman PTEA elaborated that during first half of outgoing fiscal, textile exports were $6.156 billion; whereas, after an announcement of PM’s export package, textile exports during second half remained $6.295 billion with an increase of 2.26% only.
The release of insufficient funds and incentives has restricted the growth of textile industry. The Chairman PTEA also said that the Finance Minister Ishaq Dar had announced while delivering the budget speech, that all pending sales tax refunds whom Refund Payment Orders (RPOs) have been sanctioned by April 30, 2017, shall be refunded until August 14, 2017.
Despite making payment, a large number of RPO’s have been rolled back considering unnecessary objections. Initially, it was promised that rolled back RPO’s will be processed within 30 days but even after the lapse of four months, the matter is still unresolved and textile exporters are still deprived of their basic working capital, added the chairman PTEA.
The government should pay all outstanding refunds in accordance with its commitments. He demanded the government for immediate release of budget allocation for payment of duty drawback of taxes claims under the prime minister’s package to give a quantum jump in textile exports.
Source: The Nation
