Textile exporters seek swift release of funds

Say payments under incentive packages will accelerate industrial, export growth

FAISALABAD: Textile exporters have underlined the need for immediately releasing payments under incentives-filled textile policies of 2009-14 and 2014-19 through issuance of a supplementary grant or promissory notes as a major portion of the industry’s working capital has been blocked.

“Immediate payments under these incentive packages will help accelerate industrial growth and increase exports significantly,” remarked Pakistan Textile Exporters Association (PTEA) Chairman Khurram Mukhtar in a statement. He welcomed the government’s plan of clearing the outstanding tax refund claims by issuing promissory notes, but was concerned about the delay in release of funds under the incentive schemes.



He voiced fear that inadequate tax refunds would stand in the way of getting desired results as huge funds of exporters were still stuck under the incentive schemes.



Giving details, Mukhtar revealed that the exporters’ claims of Rs10.3 billion were outstanding against the export finance mark-up support, Rs1.5 billion against mark-up rate support, Rs19.405 billion against the technology upgrading fund, Rs434 million against reimbursement of the EOBI and social security contribution of women and handicapped employees and Rs2.5 billion against the Drawback of Local Taxes and Levies (DLTL) scheme 2009-11.

Moreover, Rs10 billion was outstanding on account of income tax refund whereas another Rs10 billion was pending in income tax credit under Section 65B and 65E.

“With the shortage of funds, the textile industry is unable to tap its potential in accordance with the capacity,” he said.

Published in The Express Tribune, February 12^th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.