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Pak textile exporters unhappy with federal budget

Jun 16, 2021
Pak textile exporters unhappy with federal budget

Karachi

The value-added textile exporters in Pakistan seem to be dissatisfied with the Federal budget as not enough relief has been given to the zero-rated regimes.

A joint press conference was held at PHMA House in regard to this issue raised by the textile exporters. It was said that as the GST has been increased to 17% on the textile exports, SMEs have become financially unviable as they are stuck up due to liquidity. They are unable to fulfil export orders, pay salaries, clinch new export orders, and pay utilities.

According to the Chairmen of various associations, 33% of SME exporters have shut down their export business due to the imposition of 17% GST, which has blocked exporters’ liquidity. It has been requested that the GST should be reduced by 5% or a no payment no refund GST regime should be enforced.

The value-added textile sector has also requested the government to fix electricity tariffs, indigenous gas, and RLNG. It was also said that the government should raise the allocation for the DLTL scheme to Rs75 billion to clear backlog and new DDT claims. The government has not given any grant to release of old refund claims of exporters, they added.

Participants of the press conference also believe that the budget wasn’t industry-friendly. Earlier raw cotton and ginned cotton were exempted but the same has now been chargeable at 17%. 

Source – International The News

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