FAISALABAD City News

Hosiery manufacturers reject calculation method for DLTL

From Our Correspondent

FAISALABAD: The Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) has rejected calculation method for revision in drawback of local taxes and levies (DLTL).

In a statement here on Thursday, PHMEA chairman Dr Khurram rejected the circular FEOD/7846/DLTL/2016 issued by the State Bank of Pakistan and added that the step was unwarranted and unnecessary due to its retrospective effect. He said that it would require additional paperwork, fresh certificates/undertaking and re-verification of the claims already verified by the Ministry of Textiles. He said that it would not only delay the processing of claims but also put additional financial burden on the value-added textile sector. He said that the DLTL claims already submitted under notification dated October 22, 2014, should be acceptable as the export realisation in rupee had been calculated on daily closing rates published by the State Bank. He said

The PHMEA chairman said that if the SBP considered the new method necessary, it should be implemented from the next financial year and the central bank should intimate the exporters in the beginning and not at the end of the year when entire documentation had been completed. He further said that this type of circulars would not only create uncertainty but also foment trust deficit between the business community and the government. He urged the government to implement the prime minister’s commitment regarding zero rating of exports with immediate effect.

Dr Khurram demanded the finance minister to direct the SBP to withdraw the circular and make payment of already submitted DLTL claims immediately. He said that the textile exports had already declined and this step would have negative repercussions in addition to depriving the exporters of their profit.