Drawback of Local Taxes and Levy revise calculation leads to minimize the numbers of beneficiaries and reduce benefit upto 20 percent: Shaikh Mohammad Shafiq

Karachi, May 17, 2016 (PPI-OT): Shaikh Mohammad Shafiq, central chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) in a statement said that The State Bank of Pakistan (SBP) has revised the calculation of exchange rate for the disbursement against claims of Drawback of Local Taxes and Levy (DLTL) filed by exporters. The revision in DLTL scheme will delay payment of refunds while, the textile industry is already facing crisis and needs financial support on an urgent basis without delay.

The new method will result in unnecessary reprocessing and re-scrutiny of claims at all levels, wasting precious times. It also gives the impression that government is not serious in payment.

At a time when full payment is due and exporters have submitted their final claims after a lengthy process of paperwork revise calculation, this creates panic among the exporters as leads to minimize the numbers of the beneficiaries as well as reduce their claim amount upto 20%. SBP’s recent circular will further damage the export oriented sectors.

The government had committed in the federal budget 2015-16 for refunds of claims of Drawback of Local Taxes and Levy (DLTL) to the exporters but the recent circular of the SBP gives impression that it would not seem to be materialized like several other commitments of the government.

We regret in saying that the government has closed eyes to put glance towards the difficulties of value added exporters who is major employment generated sector of the country, which have set a bad effect on our exports that is why most of the exporters is being shifting their units in neighbour countries where the governments giving them feasible incentives.

For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan
Tel: +92-21-35890651-2
Fax: +92-21-35890653
Email: info@prgmea.org
Website: www.prgmea.org