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