KARACHI: Trade and industry has urged the government to revive `no-duty, no-drawback’ scheme for five export-oriented industries. President Lasbela Chamber of Commerce and Industry (LCCI), Yakoob H Karim in his proposal to the forthcoming federal budget (2015-16), suggested that textile exports have already declined due to high cost of doing business and inordinate delays in refunding payment under the heads of sales tax, rebate, etc and as a result of which exporters have been suffering liquidity problem.
While endorsing the proposals of FPCCI’s member-bodies, he said that, on one hand, Pakistan’s exports were on the declining trend and on the other, competition from the competitors in the international markers was increasing. “And If this trend continues unabated the government won’t be able to achieve its export target of $26 billion as pointed out in the new textile policy.
He said that if sales tax was levied at the rate of 5 per cent on the zero-rated sector – textile, leather, carpet, sports goods and surgical instruments – it would prove as a last nail in coffin of export-oriented industries. He showed his dismay that although the country had achieved the GSP plus status, around 40pc value added textile industry had already been closed, thereby causing further decline in export and creating unemployment in the sector.
He said that the FBR’s plan of levying sales tax at a uniform rate of 5pc on zero-rated export-oriented industries in the budget is nothing but to create an uproar among the exporters. The former Chairman, PTA and Vice President FPCCI in a press release appealed to the Federal Finance Minister Ishaq Dar to consider taking effective measures in the forthcoming budget for 2015-16 for promotion of national exports.
The important of which he identified was to overcome energy problem and to facilitate smooth working of leading five exporting industries i.e. leather, textile, carpet, sports and surgical goods which should be declared as zero-rated as these exporting industries were exempted under SRO 509.
Gulzar Firoz pointed out that the share of said industries was approximate 90% of national exports. He emphasized that the these five exporting industries should be extended all necessary cooperation as there was no justification for imposing 5 per cent sales tax from exports of said industries since it has to be later refunded but he said that in all cases refund gets stuck up. Its release is prolonged, sometime for years causing liquidity problem for the the exporters. He was confident that the national exports of said industries will certainly grow atleast by 20% if his proposals are considered and made part of forthcoming budget.
The post Exporters demand no-duty, no-drawback system should stay appeared first on Pakistan Press International.