The Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFAMEA) has sought several incentives including extension in Research and Development (R&D) support with enhanced rate for further five years, cut in export refinance rate and compensation against travel expenses in the forthcoming budget.
In a budget proposal sent to the Commerce Minister, the Chairman PCFAMEA, Dr Shahzad Arshad said that survival of garment sector was impossible without immediate incentive package during current situation.
R & D rate should be raised from six percent to nine percent for a period of at least five years enabling the sector to prepare for the tough time ahead. In addition, R & D facility should be extended to 75 countries instead of 32 states, he added.
Similarly, the export refinance rate for garments sector that has increased to 7.5 percent should be lowered to the level of year 2002 where it was averaging at 2.5 percent.
The Chairman, PCFAMEA said that cut in refinancing was more important keeping in view the burden of multiple taxes and levies on garment sector that was about 11 percent including 1 percent withholding tax, 4.5 percent indirect taxes and 0.25 percent direct export development surcharge on the exports.
Dr Shahzad also urged the government to share travel and marketing expenses of export at a rate three percent of the last-year's exports in the wake of deteriorated law and order situation in the country that has forced the exporters to meet buyers at foreign destinations.
'We urge the government to provide duty access to our products in USA, European Union and Japan through free trade agreements so that Pakistani exporters enjoy a level playing field', he added. He also urged the government to bring the import of Chinese garments under price control to protect the local industry.
Comments
Comments are closed.