Textile exporters have urged the government to restore zero-rating (no payment, no refund), continue the Duty Drawback of Taxes (DDT) scheme and Technology Up-gradation Fund (TUF) and reduce withholding tax (WHT) At a joint press conference, the heads of around a dozen textile associations demanded the suspension of Export Development Fund (EDF) surcharge. Despite Covid-19, textile exports increased by 17.35% as compared to last year and would reach $15.5 billion in fiscal year 2020-21.
“This will bring huge investment to the textile sector and will encourage new exporters to invest in the sector,” said Tariq Munuq. He said the TUF should be reduced from 1% to 0.5% for the exporters as this will help them to use cash liquidity for enhancing exports. The tariff on electricity, locally produced gas and RLNG should be fixed at 7.5 cents per kilowatt-hour and $6.5 per mmbtu.
