The budget is full of wrong allocation of funds and misplacement of priorities. Budget makers have failed to realise the importance of major irritations besetting the economy and evolving appropriate strategy for their solutions, Pakistan Textile Exporters Association (PTEA) Chairman Rana Arif Tauseef said here on Saturday.
Addressing a press conference Rana Arif Tauseef welcomed but termed insufficient and misappropriate use of suggestions to drag out textile sector from crisis and said it was once again sending its recommendations to the parliamentarians for consideration in the debate on federal budget. He said the three main points were identified including energy crisis, immediate payment of duty drawbacks and exemption of withholding tax on exports.
He said the government had touched all those issues but failed to resolve any one on permanent basis. Elaborating he said they had demanded 30 billion rupees for drawback refund but the government had allocated this amount in export development fund which was very disturbing. Export development fund is paid by exporters but instead of spending it to mitigate the sufferings of textile sector this amount is doled out to Trade Development Authority to conduct foreign tours and hold exhibitions.
Rana Arif Tauseef also forewarned another fast impeding gas crisis and said it would grip the country within next three months as the government had taken no viable and practical solution to ensure constant supply of gas to this foreign exchange earning sector.
He also expressed his dismay over insufficient allocation of 185 billion rupees to overcome electricity load shedding and demanded that at least 500 billion rupees should be injected in this sector to resolve the shortfall of electricity.Regarding with holding tax, Chaudhry Salamat Ali, ex-Chairman & Chief Co-ordinator, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) North Zone, said that "against our demands, the government has proposed 0.5 percent cut in tax on turnover."
He strongly demanded to abolish withholding tax on exports and mentioned that the Textile Industry in Punjab was already reeling under the excessive rates and shortage of energy. At one hand the government was resorting the frequent load shedding and on the other, it was frequently hiking power rates due to which power tariff in Pakistan had become highest. Owing to this situation, he said "our exports are facing stiff competition from regional competitors who were enjoying affordable power tariffs".
Chaudhry Salamat pointed out that high power tariffs had enhanced the cost of doing business, hurting industrial growth, exports promotion and new investment. Additional charges and surcharges like Fuel Adjustment and Equalisation surcharge, MDI, withholding tax and power factor were being added to electricity bills while long hours unscheduled load shedding were paralysing the industry and forcing closure of manufacturing units. Press conference was also attended by Qamar Aftab, Vice Chairman (PHMA) North Zone, Imran Mehmood Vice Chairman All Pakistan Bedsheets & Upholstry Manufacturers Association, Ahmad Kamal, Sh Mukhtar Ahmad, Mian Zahid Aslam, former Chairmen PTEA and other leading exporters.
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