The business community of Southern Punjab particularly value added textile industry has hailed the package of incentives of Rs 180 billion announced by Prime Minister Nawaz Sharif that envisages abolition of customs duty and sales tax on import of cotton, textile machinery and man-made fibre to boost exports. President of Multan Chamber of Commerce & Industry (MCCI) Khawaja Jalaluddin Roomi thanked the government for announcing the generous package of incentives and said the business community would not disappoint the nation describing it far-reaching.
Roomi said that under the package duty draw back rates in local taxes and duties for garments would be 7 percent; textile made-ups 6pc; processed fabric 5 percent; yarn and grey fabric 4 percent; sports goods, leather and footwear 7 percent, carpets 6 percent, surgical and cutlery 5 percent and tanned leather 5 percent. The incentives would be dispensed through the State Bank of Pakistan.
He further said the package also envisages abolition of customs duty and refundable sales tax on import of raw cotton, adding customs duty on man-made fibre, other than polyester and sales tax on import of textile machinery, has also been abolished. Jalaluddin Roomi expressed hope that 2017 and 2018 would prove to be years of exports and said the government had extended maximum incentives to the exporters keeping in viewing fiscal situation of the country.
MCCI President hoped that this package of different stimuli would further fuel exports to the EU which had already increased by 37 percent. "The package would also help exporters resolve liquidity issues which they have been facing for the last several years, in addition to improving competitiveness with regional countries. Exporters now feel ability to compete other regional countries," he added.