Mushtaq Ali Cheema, Federal Minister Textile Industry, has said that the government will approach the European Union to review the revised anti-dumping duty on import of bed linen from Pakistan, which was reduced from 13.1 percent to 9.9 percent.
Addressing the AGM of Pakistan Textile Exporters Association here on Thursday night, he said: "The government is actively struggling to remove the anti-dumping duties on the bed linen however, the current decision of the European Union will provide a slight relief of 3.2pc to Pakistani exporters in European markets against exporters of other countries."
He said: "The existence of a vibrant export culture of the present government with active participation of the private sector is yielding positive results on one hand, while strategy for reducing hurdles exclusively zero-rated sales tax etc for promotion of exports as well as production also providing Pakistani exporters an edge, on the other hand."
Business friendly policies of the government have become an important factor in the economic development of the country, he said and added, 'the relationship between the government and private sector in field of export and research & development is therefore the key factor for economic growth.' Pakistan has keen interest in regional economic integration and will seek the active involvement of the private sector of the member countries to contribute positively to achieving export targets and trade.
BIG ACHIEVEMENT: Cheema claimed that the zero-rating of sales tax is a big achievement of the current budget. Textile exporters have been relieved of the biggest irritant. This is a massive relief to the textile exporters and industrial sector as there would be no blockage of cash flow of the exporters in the sales tax refund regime and 'they will have easy cash flow and no liquidity crunch in future', he added.
Earlier, most members of the PTEA have given a lukewarm welcome to the decision of the European Union, which has revised the anti-dumping duty with different slabs on import of bed linen from Pakistan.
Outgoing chairman Faiq Jawed pointed out that the government had assured the business community that the Pakistani exporters would get relief soon. He congratulated Mushtaq Ali Cheema for the excellent efforts in achieving zero rate sales tax success and said that the whole exporter community is grateful to the government for this relief.
SALES TAX REFUND RECOVERY: Faiq Jawed mentioned that the recovery of sales tax refund pertaining to earlier years has become a big irritant. Difficulty in clearance of refund arrears has been caused by two factors; firstly, unusual increase in refund claims filed in June, 2005 compared to June, 2004 and secondly, extraordinary volume of stock and slow pace consumption of the existing stock.
"Consequently, huge funds of earlier period refund claims are stuck up with the sales tax department," he added. He requested the government to solve this problem at an appropriate level as early as possible.
He mentioned that the government has allowed 6pc R&D facility to exporters of garments. "This facility is restricted only to garments manufacturers and exporters," he said, adding, "the exporters of bed linen also deserve the 6pc R&D facility in order to improve the quality, variety and export of bed linen to sophisticated buyers."
He urged that government to get permission for this facility for PTEA members.
Earlier, Federal Textile Minister Mushtaq Ali Cheema inaugurated the Textile Testing Laboratory in PTEA House, which was a longstanding demand of exporters of the area.
The Pakistan Textile Testing Foundation (PTTF) has established this most modern textile-testing laboratory of international standard at Faisalabad with the cost of Rs 30 million. The laboratory will meet the requirement of foreign buyers and buying houses.
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