Textile industry representatives on Thursday met with Advisor to Prime Minister on Finance Miftah Ismail and requested him to solve the matters pertaining to tax refunds of sales tax and drawback of local taxes and levies (DLTL) as well as smooth supply of gas to textile units. A delegation of All Pakistan Textile Mills Association (APTMA) also presented textile related proposals for budget 2018-19 to the advisor. The industry said that high cost of energy, raw material and refunds are failing them to compete with regional players in the global market. The delegation also requested the advisor to issue them exemption certificates against their pending refunds so that the refund amount is adjusted against applicable taxes.
The advisor assured the industry that he will try to resolve their problems in a follow-up meeting very soon. While on budget proposals, he said the decision will be taken after assessing their impact on the revenue. Ismail said that textile industry has a key contribution in country's industrial development and is earning foreign exchange.
A member of the delegation told Business Recorder after the meeting that energy price is making them uncompetitive in the international market as opposed to other regional players. "If we (Punjab-based industry) are unable to compete within the country due to difference in gas price, how we are going to compete with other regional players in the international market," he added. He said that per MMBTU gas price is Rs 600 for Sindh industries while Punjab based industries are being provided with RLNG at Rs 1500 per MMBTU.
He said that over Rs 100 billion refunds, sales tax and others are pending and creating liquidity problem for them.
Moreover, he stated that there are also gaps in implementation of Prime Minister's Incentive Package for Exporters. The advisor was requested to expedite cases of refunds, as it is a major issue confronting the textile manufacturers.
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