All eyes are on the upcoming Budget of the PTI Government being announced on 11th June 2021. The textile exporters are also hopeful for a significant tax reduction to expand their businesses further. Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has asked the government to reduce the withholding tax (WHT) to 0.5 percent only. PHMA further requested for reducing electricity tariff for industries and suspension of export surcharge.
The value-added textile exports associations has also requested to restore zero-rating that will boost their performance and profits. Council of All Pakistan Textile Mills Associations Chairman Zubair Motiwala, and other participants highlighted that despite Covid-19, textile exports have increased by 17.35 percent compared to last year and would reach $15.50 billion in FY 2020-21. The collection of EDF surcharge was approximately Rs9 billion annually. Presently, the government has Rs58 billion in its kitty on account of EDF. Hence, they demanded the government to suspend the collection of surcharges till the Rs58 billions of EDF was exhausted.
They further asked that the government fix the tariff of electricity, indigenous gas, and RLNG for exporters at 7.5 cents/kWh, Rs819/MMBTU, and $6.5/MMBTU, respectively internationally capture more markets.
