Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Waheed Ahmed Wednesday urged Finance Minister Asad Umer and Adviser to Prime Minister on Commerce & Industry, Abdul Razzak Dawood to implement the Drawback of Local Taxes and Levies (DLTL) scheme announced by the previous government for financial compensation to the affected kinnow exporters.
In a letter to the finance minister and the advisor, he noted that exporters who had sustained huge financial losses on export of kinnow to Russia in 2016-17 shall be compensated by immediate approval of financial assistance of $ 250 per container announced by the previous govt. If the exporters get firm assurance to get DLTL revived, they can fully focus on export of kinnow during the forthcoming season.
He said exporters of kinnow were highly encouraged with the announcement of financial assistance (DLTL scheme) and as a result of that they worked hard and attained an ever-highest export volume of kinnow of 360,000 tons in the last kinnow season.
He expressed the fear that if the announcement of DLTL scheme by government is not made immediately, not only the confidence of exporters would be badly shattered but it is likely that this inaction would have serious negative impact on the kinnow export target during the forthcoming season which is just 7 weeks away.
If that happens, this in turn would further create shortage of foreign exchange and hence, possible blow to the economy. Waheed maintained that Prime Minister Imran Khan is keen to enhance exports and thus timely approval of the DLTL scheme would be a right step at the right time in a right direction.
The FPCCI VP appealed to the MoF to keep national interest supreme. The commitment by the govt for extending financial assistance to the affected kinnow exporters in the form of DLTL scheme must be honored so that the vital role, the exporters of fruits and vegetables have been playing in supporting the economy can be further strengthened.
All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA) has also sent letters to the finance minister, minister of commerce, TDAP, PHDEC and the President of FPCCI apprising them of serious repercussion if the announcement of DLTL scheme is delayed. Although the amount of financial assistance was much less than anticipated, merely a meagre mount of $ 250 per export container to Russia nevertheless acted as 'catalyst' to boost the morale of exporters to attain ever-highest export volume of 360,000 tons.
It would enhance cash liquidity to subsequently help them to achieve even still better results during the next kinnow season. According to PFVA, the kinnow season is about 7 weeks away and an inordinate delay in the approval of the DLTL has added to the woes of kinnow exporters.
They have already invested heavily for achieving bigger export volume in the next season attaching high hopes with the govt. According to PFVA, its professional image would also be hurt as it has repeatedly assured its members about the financial assistance from the GoP after the announcement of DLTL scheme. PFVA has already scrutinized the claims submitted by the kinnow exporters for onward submission to the TDAP.
How devotedly the PFVA has been making all possible efforts to enhance export volume of this specific sector and ultimately rich dividend of its sincere efforts has been paid when export of this sector increased by 14.5% to US$ 608 million during 2017-18. To keep the morale of exporters high, it is of paramount importance to ensure implementation of the DLTL scheme without any further delay, it added.
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