Budget 2020-21: PCMA wants major hindrances to be removed for textile industry.

Byline: Khalil Ahmed

Mr Ahmed Chinoy Chairman of Pakistan Cloth Merchants Association (PCMA) recently requested the government to remove major hindrances which are identified by the textile industry in the upcoming budget 2020-21. He said the textile industries have potential to uplift the economy if the Government of Pakistan provide them level-playing field and support the textile industry. He said Pakistan gained improvement in the country's ranking on the World Bank's Ease of Doing Business by 28 places to 108 in 2019. Restore Zero Rating on GST - 'No Payment No Refund Regime' through revival of SRO 1125.

He demanded the duty drawback of Taxes (DDT) should be increased from half and it must be fully paid. Withholding Tax (WHT) should be reduced from 1% to 0% and for exporters custom rebate should be refunded electronically through SBP along with export proceeds and there is a need of reduction in duties and taxes on import of raw material used by textile industry. He even pushed to suspend collection of Export Development Surcharge till unitized amount of Export Development Fund (EDF) and outstanding payment of Technology Up-graduation Fund (TUF) Schemes reinstate TUF Scheme in upcoming textile policy. Restoration of Income Tax Credit U/S 65(B) to encourage BMR and also include proprietorship and AOP with companies. EOBI and Social Security contributions should be borne by Government on behalf of textile industry for FY 2020-21. Reinstate omitted sub-section (b) and (c) of clause 10 of SRO 327 of Export Oriented Units vide SRO 747(1)/2019. Energy Tariff @ 7.5 cents/KWh. RLNG @ US$6.5/MMBTU.

Chairman of PCMA said that the ranking will be decrease from 108 places if the government should provide a...