Representatives of exporters of fruits and vegetables called for exemption of the withholding tax of 1.25 percent and duty free imports of chemicals for exports of value-added fruits and vegetables. They made this demand during an interactive session on the export package of Rs 180 billion recently announced by the Prime Minister.
The session was sponsored by the president of the Federation of Pakistan Chambers of commerce and Industry, Zubair F Tufail, They also asked for early verification of machinery from the Engineering Development Board as it takes at least six months. They also demanded a ban on the import of injurious and non-halal juices.
Representatives of textiles associations requested a level playing field as the cost of production, particularly the prices of utilities, are very high in Pakistan, compared to countries like Vietnam, India, Bangladesh and Sri Lanka. This makes Pakistani goods uncompetitive in the international market.
They also demanded zero-rated imports of textile machinery and spareparts. Moreover, they urged early payments of sales tax refunds as millions of rupees of textiles refunds are still pending. The stakeholders also stated that the recent package will only benefits the yarn sector because the price of yarn has increased by 12 percent, while industries producing bedware and towels will be seriously affected by the package.
Furthermore, the commercial exporters may also be included in the package, which is only for the manufacturers and exporters.
They also requested implementation of textile policy (2014-19), where several incentives were announced, such as increase in the share of value addition of products, reduction in export refinance rate (EFS) and long-term financing facility (LTFF), a subsidy on long-term loans and development and special duty drawbacks.
The exporters of rice also requested a five percent DLTL as they are facing high input cost in terms of utility prices.
Speaking on the occasion FPCCI president Zubair F. Tufail briefly explained the outcomes of his meetings with the Prime Minister and the Finance Minister and said that he has requested the Prime Minister for a package for rice growers and all export-oriented sub-sectors to exploits their exports potential to the maximum..
He also praised the efforts of S M Muneer in bringing the package to exporters and stated that this package is basically for the five zero-rated sectors of exports.
He invited budget proposals from the associations to be included in the Federal Budget Proposals 2017-18.
He assured the member associations that their problems will be take up in future meetings with the Prime Minister, Finance Minister and Commerce Minister.
FPCCI vice president Irfan Sarwana explained the salient features of the package and said that the exporters will be liable to increase exports by five percent in the first six month and then by 10 percent in the next year.
He added that there will be no condition during the first six months of the package, but later a duty draw back will be linked to an increase in exports.
He further stated that the package gives larger incentives to the textile sector, which is the backbone of the Pakistani economy; contributed 8 percent to the GDP and more than 50 percent to Pakistani exports.
The session was attended by Ishtiaq Baig and Saquib Fayyaz Magoon, vice presidents of the FPCCI and by other prominent businessmen.
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