Pakistan Hosiery Manufacturers Exporters Association (PHMA) has appealed to Prime Minister Nawaz Sharif to provide the zero-rating facility for textile exports from April 1 instead of from July, 2016. It is pertinent to mention here that the prime minister has announced zero-rating facility for textile exports, which would be implemented from July this year.
"I express my gratitude to you for announcing zero rating facility for textile exports, which was our long standing demand, but keeping it in pending till July, 2016 would be a long time, and might be detrimental to the industry," said Chief Co-ordinator PHMA, Javed Bilwani in a letter written by him to the prime minister on Monday. The letter says that the country textile exports are falling persistently in a state of emergency, requesting the premier to review his decision and provide this facility from April, 2016.
"Honourable Sir, due to deduction of taxes approximately 4 percent to 5 percent of the total amount of exporters' consignment which are held up as Sales Tax Refund Claims in form of sales on purchase of yarn, weaving, knitting, processing and packing material; customs rebate in the form deemed duty drawback; local taxes in the form drawback of local taxes & levies claims while the total profit of the majority of textile exporters is 31/2 percent to 4 percent. The exporters are really in a fix because while their margin of profit is a measly 31/2 percent to 4 percent the amount of stuck up liquidity of exporters is 4 percent to 5 percent and that too is stuck up for almost a year," it says. The letter says that the vital export sector faces immense problems and hurdles, which should be removed to enhance and boost exports. It proposed that the tariff of power and gas be reduced to the level that the regional peers were providing to their respective export sectors.