Budget upsets textile exporters for not including zero rated regime

Staff Reporter

The value-added textile exporters expressed dissatisfaction at Federal Budget 2021-22 for not giving enough relief as it did not incorporate proposals for restoring zero rating of GST, reducing withholding tax rate to 0.5 percent and suspending EDF surcharge.

Pakistan Apparel Forum Chairman Jawed Bilwani, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) South and North Zone chairmen Tariq Munir, Faisal Mehboob Sheikh, Pakistan Knitwear and Sweater Exporters Association Chairman Rafiq Godil, and others addressed a joint press conference at PHMA House in this regard.

They said imposition of 17 percent GST has made the textile exporters, especially SMEs financially unviable due to stuck up liquidity.

They said it served no purpose and made them suffer throughout the year, making it difficult to fulfil export commitments, pay utilities and salaries to staff and workers, and to clinch new export orders.

“It is on record that 33 percent SME exporters have closed their export business as compared to last year due to imposition of 17 percent GST, which blocked exporters’ precious liquidity,” they said.

`To revive the SMEs they asked to restore the no payment no refund GST regime or to at least reduce the GST rate to five percent.

The value-added textile sector had also submitted a request to the government to reduce and fix tariff for electricity, indigenous gas and RLNG, which was not addressed.

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