Tuesday , October 26 2021
Breaking News
Home / Latest News / Textile exporters press govt for early tax refund
Textile exporters press govt for early tax refund

Textile exporters press govt for early tax refund

PTEA chairman says textile exports are crumbling and industry and business are squeezing due to non-availability of funds and energy

 

FAISALABAD: The Pakistan Textile Exporters Association (PTEA) has urged the government to expedite the process of paying billions of rupees outstanding tax refunds for maximum industrial growth and significant increase in exports.

PTEA Chairman Sohail Pasha and Vice Chairman Rizwan Riaz Sehgal said capital of a large number of textile exporters was stuck in refund regimes, creating severe financial crunch. If the amount released, exporters could spend it on expanding their businesses, which in return would boost Pakistan’s export earnings, they said, adding that Pakistan held only 1.5 percent of the global market shares in textile, which meant that this industry has strong prospects to grow.

“Textile exports had crossed $13.7 billion mark in the outgoing fiscal and would be achieving far better results if the circumstances remained conducive. But the liquidity crunch created by the blockage of refund claims is playing havoc with the tempo of exports. Textile industry has aimed at getting maximum benefits from GSP Plus and has the ability to hit $15 billion export target in current fiscal year, but achieving the desired results in absence of adequate funds seems impossible,” they opined.

Sohail Pasha said that textile industry has taken a severe hit at a time when many of the leading players had invested huge sums in upgrading infrastructure and expanding capacities, planning to meet the growing needs of the export market but severe shortage of energy devastated the manufacturing and industrial sectors rendering export units dysfunctional and the situation is resulting in the loss of production.

“Prevailing economic, financial and industrial crises have badly affected the industrial and trade activities, productivity and employment and major revenue generating textile sector to the tune of over $13 billion per year is in the doldrums. Exporters are working under dire circumstances as the cost of inputs is increasing day by day rendering them unable to compete in international market. Textile industry, the largest employer in the country’s manufacturing sector and the largest exporting industry, is currently going through a very tough time and unless remedial measures are immediately taken, a large number of units will have to close, throwing thousands of workers out of jobs. Textile exports are crumbling and the industry and business are squeezing due to non-availability of funds and energy,” he claimed.

Rizwan Riaz demanded that the government should bail out textile industry and exports from the crisis by removing hurdles and providing of necessary incentives to increase the textile exports of the country. He demanded that the government early release blocked funds in sales tax, customs rebate DLTL and FED refund regimes to enable exporters to retain their hard-won export markets and to get benefits of GSP Plus.