Industrialists seek extension in deadline for DDT claims

Businessmen say lockdown, less working hours have impacted efficiency of trade, industry

KARACHI: Industrialists have urged the government to extend the cut-off date for the submission of incremental claims under the Duty Drawback of Taxes (DDT) Scheme for the fiscal year 2018-19, to July 31, 2020.

In a statement on Tuesday, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Central Chairman Chaudhry Salamat Ali requested the Ministry of Commerce to consider extension in the cut-off date for DDT claims from May 31 to July 31, 2020. He argued that it would enable textile exporters to submit their claims without hassle in the midst of a global business slowdown, lockdowns, and reduced working hours for the past two months, which had slowed working efficiency of trade and industry.

Ali said several exporters had approached him, claiming that they were unable to complete procedural requirements for submitting the DDT incremental claims at banks and authorised dealers by the existing deadline.

“Unprecedented challenges have emerged for the textile industry of Pakistan in the wake of Covid-19,” he said while expressing concern.

“Government should facilitate exporters by allowing them to submit the remaining 50% DDT claims for FY20 on the basis of nine-month performance as export production remained at a standstill and suffered for a whole quarter due to lockdown.”

He voiced hope that the favourable move by the government to facilitate textile exporters would boost their confidence in enhancing exports in the following years.

In a letter addressed to Adviser to Prime Minister on Commerce Abdul Razak Dawood, Ali requested the government to pay attention to the ministry’s notification dated August 3, 2018, for the Duty Drawback of Taxes Order 2018-2021.

According to the notice, the government gave an extension in the prime minister’s incentive package for exporters in order to allow the drawback of taxes collected from textile exporters.

Under the order, DDT will be allowed for shipments from July 1, 2018, to June 30, 2021, while the cut-off date for the filing of claims in each financial year will be May 31 of the subsequent year.

Owing to the pandemic, the textile industry of Pakistan was affected and remained closed for 50 days and it resumed operations/production after taking special permission from the government, the letter read. “In such a scenario, banks as well as the State Bank of Pakistan open for reduced working hours and with limited staff, which has been causing the delay,” he said.

“Last year, the ministry extended the cut-off date from May 31, 2019, to July 31, 2019, and the date of submission of DDT claims for the year 2018-19 must be extended to July 31, 2020.”

Published in The Express Tribune, May 20^th, 2020.

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