Home »Top Stories » PM’s package: Textile ministry wants Rs 40 billion

  • News Desk
  • May 23rd, 2017
  • Comments Off on PM’s package: Textile ministry wants Rs 40 billion
The Ministry of Textile Industry is seeking Rs 40 billion in budget 2017-18 for implementation on Prime Minister' Incentives Package for Exporters and Textile Policy (2014-19), it is learnt. Official sources revealed to Business Recorder that textile ministry while seeking Rs 40 billion for the fiscal year 2017-18 has written a letter to the Finance Division in this regard.

The finance minister is likely to commit the amount required for implementation of the PM Incentives' Package, said the official. For the current financial year (2016-17), the Ministry of Textile had demanded Rs 30 billion for taking different initiatives that were integral part of the textile policy, including textile investment support fund, drawback of local taxes and refund of past research and development (R&D) claims.

However, the government committed Rs 6 billion for the current fiscal year and has released Rs 2.6 billion so far on account of duty drawbacks on local taxes. Out of this amount, Finance Ministry had released Rs 1 billion to the State Bank of Pakistan (SBP) for duty drawbacks on local taxes collected from garments, home textiles, processed fabric, greige fabric and yarn manufacturing cum-exporters units under the PM's Exports Incentive Package.

Breakup of drawbacks on local taxes revealed that Rs 1 billion were released for claims pertaining to 2015-16 and Rs 0.6 billion for claims pertaining to duty drawbacks on local taxes for 2014-15. Textile Ministry has requested the Finance Ministry for the release of Refund Payment Orders (RPOs) worth Rs 30-35 billion pending with the government. The government has provided zero rating to five export oriented sector including textile. Moreover, Rs 30 billion have been released to the exporters including textile, sources revealed.

Official said that finance minister would announce in his budget speech paying of RPOs till April 30, 2017 by August 31, 2017. Sources said that Federal Board of Revenue (FBR) has directed that RPOs from July 2016-17 would again be scrutinised, however the textile associations have requested that this would delay their payments.

The textile association requested that it has been reported to it by many leading businessmen that amounts have been withdrawn by the FBR from the bank accounts. The association stated that such act would damage the image and give an unpleasant business scenario. Textile Ministry reportedly raised the issues with the Finance Division but got no assurance. However, the government would continue zero rating on textile machinery import in the budget for the textile industry. The government has earmarked Rs 150 million in the Public Sector Development Programme (PSDP) 2017-18, including Rs 114 million for one thousand industrial stitching units and Rs 36 million for Faisalabad Garment City Training Centre.



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