PRGMEA demands zero-rated regime
Also urges govt to release all stuck claims of exporters
Representational image. PHOTO: REUTERS
LAHORE:
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called for the restoration of zero-rated regime of ‘no payment and no refund of sales tax’ for export-oriented sectors including textile at least for one year to sustain the industry amidst the liquidity crunch due to the Covid-19 crisis.
In its budget proposals sent to Adviser to PM on Commerce Abdul Razak Dawood, PRGMEA Chairman (North Zone) Sohail A Sheikh and Chief Coordinator Ijaz A Khokhar urged the government to release all stuck claims of the exporters, including drawback of local taxes and levies (DLTL), duty drawback on taxes (DDT), customs rebates and sales tax rebates, as the liquidity crunch is a major stumbling block in the way of improving exports.
They maintained that the apparel industry should be allowed to import fabric under the SRO 492 scheme, as the weaving industry of Pakistan is unable to fulfil demand for fashion wear.
Furthermore, Khokhar demanded one-window operation so that exporters could focus on market research and marketing for their products. He also proposed that cotton yarn, the major raw material of apparel sector, should be exempted from all duties and taxes to encourage value addition.
Published in The Express Tribune, May 31st, 2020.
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called for the restoration of zero-rated regime of ‘no payment and no refund of sales tax’ for export-oriented sectors including textile at least for one year to sustain the industry amidst the liquidity crunch due to the Covid-19 crisis.
In its budget proposals sent to Adviser to PM on Commerce Abdul Razak Dawood, PRGMEA Chairman (North Zone) Sohail A Sheikh and Chief Coordinator Ijaz A Khokhar urged the government to release all stuck claims of the exporters, including drawback of local taxes and levies (DLTL), duty drawback on taxes (DDT), customs rebates and sales tax rebates, as the liquidity crunch is a major stumbling block in the way of improving exports.
They maintained that the apparel industry should be allowed to import fabric under the SRO 492 scheme, as the weaving industry of Pakistan is unable to fulfil demand for fashion wear.
Furthermore, Khokhar demanded one-window operation so that exporters could focus on market research and marketing for their products. He also proposed that cotton yarn, the major raw material of apparel sector, should be exempted from all duties and taxes to encourage value addition.
Published in The Express Tribune, May 31st, 2020.