Pakistan’s textile exporters say the Federal Budget 2021-22 fails to meet expectations as it does not restore zero rating of GST, reduce withholding tax rate to 0.5 per cent or suspend EDF surcharge. Jawed Bilwani, Chairman, Pakistan Apparel Forum; Jawed Tariq Munir, Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) South and North Zone; Rafiq Godil, Chairman, Pakistan Knitwear and Sweater Exporters Association Chairman, etc say imposition of 17 per cent GST has made textile exporters, especially SMEs financially unviable due to stuck up liquidity. The tax has made it difficult for them to fulfill export commitments, pay utilities and salaries to staff and workers, and to clinch new export orders.

Exporters had requested the government to reduce and fix tariff for electricity, indigenous gas and RLNG, which they complained had not been addressed. They say though the government has allocated Rs 20 billion for DLTL scheme, cases amounting to Rs 32 billion were pending with the State Bank of Pakistan. They had requested the government to increase allocation to Rs 75 billion for clearance of backlog and new DDT / DLTL claims.

They also opposed raising sales tax on import of plant and machinery from 10 per cent to 17 per cent. They are against the introduction of new 203(A) section to arrest and prosecute according to which the Federal Board of Revenue (FBR) would have the power to arrest on their discretion.