Pakistan Textile Exporters Association (PTEA) has made an appeal from the Government of Pakistan through advertisement by Dawn Newspaper regarding rescue the largest revenue generating & Job providing textile industry.
EXTREME CASH FLOW CRUNCH has seized the industrialization and export growth.
♦ Textile exporters’ working capital of PKR 170 billion is still blocked in refund regime (Sales Tax, Custom Duty Drawback, Income Tax, Income Tax Credit, DLTL & DDT).
♦ Textile Policy Incentives (TUF, Mark-up support) are pending since 2009.
♦ Refunds of provincial sales tax have been pending since 2013
♦ Exporters who supported the Government in critical financial conditions by opting for Promissory Bonds against their Sales Tax RPOs till 30 June 2019, are still deprived of funds for the last 4 months.
♦ In the wake of massive shortfall of 5 million bales in cotton yield, levy of 3% Custom Duty, 2% Additional Duty and 5% Sales Tax on cotton import have significantly increased the cost of production.
♦ Despite affirm commitments of expeditious payment of refunds, FBR has collected approx. Rs. 100 billion ln last 100 days but refunded less than 5%.
♦ This is resulting in massive de-industrialization, stagnation in exports and extreme level of unemployment.
♦ Immediate release of all outstanding refunds, rebates and DLTL including textile policy incentives to ease off the financial stress of textile exporters.
♦ Immediate cash payment in lieu of Promissory Bonds issued against Sales Tax refunds.
♦ Withdrawal of duties & taxes on import of cotton to ensure easy availability of basic raw material at competitive prices.
♦ Reconsideration of withdrawal of zero rating regime to secure the competitiveness in international market.
Special Energy Tariff for zero rated industries should be implemented in letter & spirit.