On Friday (tomorrow), the government will release Rs8 billion under the drawback of local taxes and levies (DLTL) claims of industries to help them overcome cash constraints, according to a commerce adviser.
The fund will be transferred starting July 2nd, according to Adviser to Prime Minister for Commerce and Investment Razak Dawood. “I hope that this would help our company exporters with cash flow concerns and improve their production,” Dawood stated on Twitter.
Despite demands from textile exporters, who are the principal claimants, to boost the allocation to at least Rs75 billion to clear backlog and new duty drawback of taxes (DDT) / DLTL claims, the government has budgeted Rs20 billion for the DLTL scheme in the budget 2021/22.
According to them, the central bank has unable to clear Rs32 billion in exporter DLTL payments. As the government began making DLTL payments, textile exports are likely to rise by 17% to $15.5 billion this fiscal year, they added.
According to the Pakistan Hosiery Manufacturers and Exporters Association, textile exports climbed by 7.3 percent in 2010 and 35 percent in 2011, after the government began disbursing DLTL in 2009. However, they declined by roughly 11 percent in 2012 due to DLTL withholding payments (PHMA).
The government should streamline and automate the DLTL/DDT payout procedure, which should be electronically transferred to exporters along with export revenues.
Textile exporters praised the budget, but claimed it didn’t include the no-payment-no-refund scheme, reduced withholding taxes, and the suspension of the export development fund surcharge.
- In-Depth Analysis2021.12.16Cotton Yarn/Fabric Market Report – 16th December, 2021
- Industry And Cluster2021.12.16CITI Elects New Office-Bearers for the year 2021-22
- News & Insights2021.12.16Global Smart Textiles Market Estimated to be Valued at US$ 6.6 Billion by 2026 | MarketsandMarkets™ Study
- Articles2021.12.16Can Waste Wool Replace Bubble Wrap?