Five export-oriented industries FPCCI urges government to revive 'no-duty, no-drawback scheme'

The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has urged the government to revive "no-duty, no-drawback scheme" for five export-oriented industries. Regional Chairman and Vice President Khawaja Zarar Kaleem in his proposal for the forthcoming federal budget 2015-16 has suggested that textile exports had already declined because of 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.
He said Pakistan's exports are on the declining trend and that the competition from competitors in the international markers is increasing. "And if this trend continues the government won't be able to achieve its export target of $26 billion as pointed out in the new textile policy," he mentioned.
He also 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. The vice president further said the Federal Bureau of Revenue's plan of levying sales tax at a uniform rate of five percent on zero-rated export-oriented industries in the budget is nothing but to create uproar among the exporters. He said the chamber had appealed to Federal Finance Minister Ishaq Dar to consider taking effective measures in the forthcoming budget for promotion of national export. The important of which he identified was to overcome energy problem and to facilitate smooth working of five leading exporting industries (leather, textile, carpet, sports and surgical goods) which should be declared as zero-rated as these exporting industries were exempted under SRO 509. He emphasised that these five exporting industries should be extended all necessary cooperation as there is no justification for imposing five percent sales tax from exports of said industries since it had to be later refunded but he said in all cases refund gets stuck up. He was confident that the national exports of said industries will certainly grow at least by 20 percent if his proposals would be considered for the forthcoming budget.