Karachi, April 28, 2025 – The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has issued a grave warning regarding the economic fallout caused by the prolonged closure of major highways across Sindh. In a strongly worded statement, PHMA highlighted that ongoing protests disrupting key transport routes leading to Karachi Port have brought the export sector to a virtual standstill.
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Hosiery manufacturers demand fast release of sales tax refunds
Hosiery manufacturers and exporters have urged the Federal Board of Revenue (FBR) to accelerate the pace of sale tax refund release.
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PHMA cries foul on gas suspension to textile industry
KARACHI: Pakistan Hosiery Manufacturers & Exporters Association (PHMA) on Wednesday harshly condemned gas utility for abrupt suspension to export sector.
In a statement PHMA central chairman Shahzad Azam Khan said that Sui Southern Gas Company (SSGC) without serving any notice and offering any alternate arrangement suspended the gas supply, which is causing severe hindrances in industrial activities.
READ MORE: PHMA organizes seminar on export facilitation scheme
The PHMA Chairman, in an appeal sent to Prime Minister Imran Khan and Energy minister Hammad Azhar, has asked to take immediate cognizance of the aggravated situation and rescue the export-industries of Karachi from inequitable conduct of the SSGC. He made a request to the Federal Energy Minister to pass directives to the SSGC for restoration of gas connections of value-added textile export industry in Karachi.
He lamented that Prime Minister Imran Khan was all out to support the export-oriented sectors of Pakistan but some vested interests are bent upon frustrating the intents of the government by harassing exporters and hindering the unprecedented growth in exports.
READ MORE: PM appealed restoring gas to Karachi industrial zones
According to him, exports from Pakistan have registered an impressive uplift over the last few months due to unflinching support by the Prime Minister and coordination of the Energy Minister Hammad Azhar but the pace of potential upsurge in exports may be retracted by unfriendly attitude of the SSGC.
The PHMA Chairman observed that the export industries of Karachi have already been facing extreme gas outages and low gas pressure for the last more than three months despite of the assurance of the govt to supply uninterrupted gas to the export industries. Nonetheless, rather to admit and take the responsibility of the current gas crises due to unwise planning the SSGC Management has been blaming the top export industries as thieves which is highly deplorable.
“It is the deepest level of disrespect and disgrace to call exporters thieves who are the highest paymasters of SSGCL, supporting the national economy and export industry as the driving force, generating 68 percent revenue for the national exchequer and contributing 54 percent to total national exports, besides providing highest urban employment in Karachi.
He said that the SSGC management is also harassing and forcing the textile exporters to sign undertakings, which is very unfortunate.
Expressing concern, Shahzad Azam Khan condemned the SSGC for character assassination of Pakistani exporters in the eyes of international community. If the government and its organizations are hesitant to give the deserving recognition and due credit to exporters to strengthen the national economy and earn valuable foreign exchange for Pakistan then they should also refrain from damaging their character.
Is there any ulterior motive to purposefully target and victimize the industries of Karachi so they may shift elsewhere in Pakistan or abroad, he questioned. He requested the Prime Minister to call an immediate delegation of value-added textile exporters to have an insight of burning issues and problems being faced by exporters. He opined that the industries of Karachi must not suffer at the cost of maladministration and ill-planning of the SSGC who are responsible for the ongoing gas crises.
“Prime Minister Imran Khan must intervene to save the billions of dollars investment of value-added textile export and facilitate them in real spirit in the light of his vision to enhance exports to strengthen the economy of Pakistan.”
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PSW to link 27 banks for trade facilitation
KARACHI: Naveed Abbas, Additional Director and Chief Domain Officer, Pakistan Single Window (PSW) has said that 27 banks will be integrated with the PSW for the facilitation of import and exports.
He was addressing at an orientation session organized by Pakistan Hosiery Manufacturers & Exporters Association (PHMA) on Wednesday.
He said that the facility will help reduce time, cost, and complexity to ensure ease of business, besides supporting the government agencies in adopting an integrated risk management approach for efficient enforcement of control on cross-border trade.
Under the PSW platform, he said, an ICT-based port community system will also be established and all stakeholders including FIA, Customs, terminal operators, and others will be integrated for efficient cargo management at seaports, airports, dry ports, and land border crossings.
The implementation of PSW by June 2022 will enable Pakistan to achieve compliance with WTO’s Trade Facilitation Agreement besides helping to unlock its potential in becoming a hub for trade and transit.
He informed that thousand of registrations have been received so far in the PSW portal whereas 27 banks will also be integrated with PSW which would save the business community from visiting banks to fulfill the requirement of Export and Import forms. Right now in the first phase, PSW have five large banks integrated and other are under process.
Yawar Nawaz, Additional Director (PSW) gave a detailed presentation on the main context of Pakistan Single Window (PSW) is to efficient cross border trade management – key enabler for FDI, GVCs integration, International Trade & Transit; 75 Regulators – working in silos with weak controls, limited resources, antiquated regulations/enforcement; Resultant Thick Borders – nullifies strategic location of Pakistan & investment in allied infrastructure and NSW to overhaul management of external trade/transit & fulfil commitment under WTO’s TFA.
The Scope of PSW is that Single ICT based National Trade Platform for processing cross border trade; Process re-engineering & back-end automation of participating government departments; Port Community System for removing logistic side inefficiencies; Integrated Risk Management for smarter controls, compliance & facilitation; Integrated Tariff Management System for simplified compliance; A robust Business Model for sustainable operations & phased expansion.
The Core Services of PSW are Integrated Tariff Management System, Unified Registration System, Unified e-Payment System, Integrated Lab Management, Integrated Risk Management System, Joint Inspections, Port Community System, Trade Information Portal, Alignment of WeBOC, Hardware, Change Management and Implementation Plan.
The Cardinals for PSW is to eliminating redundancy & duplication, least physical engagement among stakeholders, use of standardized and harmonized data elements, incremental submission of structured data with parallel processing, automatic routing & verifications and real time information exchange. Samar Jamil, BPM Head (PSW) briefed the Registration Process step by step.
After detailed presentation, exporters asked several questions related to PSW which was answered by the PSW Team of Officials.
Muhammad Jawed Bilwani Chief Coordinator & Former Central Chairman PHMA welcomed the PSW Officials at PHMA for this orientation seminar to enlighten the exporters about the main features of PSW which will provide single electronic platform for facilitating compliance with regulatory regime for cross border trade in Pakistan and to answer questions asked by exporters.
Shahzad Azam Khan, Central Chairman PHMA; Abdul Rehman, Chairman (SZ) PHMA; Abdul Kadir Bilwani, Senior Vice-Chairman; Faisal Arshad Shaikh, Vice-Chairman also participated in the Seminar and appreciated this imperative initiative which is a need of time to provide single and unified platform for business requirements which will decrease the cost of manufacturing and shall increase the ease of doing business.
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PHMA organizes seminar on export facilitation scheme
KARACHI: A seminar was organized by the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in collaboration with the Federal Board of Revenue (FBR) on new Export Facilitation Scheme 2021 (EFS 2021).
The export facilitation scheme was notified through SRO957(I)/2021 dated July 30, 2021.
The seminar was organized on Wednesday simultaneously at PHMA House, Karachi, Lahore, Faisalabad & Sialkot.
A large number of textile exporters participated physically at PHMA Offices and also joined this session online on Zoom and YouTube.
Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim and Moeen Afzal, Additional Collector, Model Collectorate of Customs (Exports) Port Qasim participated from Customs, Federal Board of Revenue to brief the salient features and registration process of Export Facilitation Scheme 2021 (EFS 2021).
Muhammad Jawed Bilwani Chief Coordinator & Former Central Chairman PHMA welcomed the Customs Officials at PHMA for this orientation seminar to enlighten the exporters about the main features of EFS and to answer questions asked by exporters.
He appreciated that PHMA and FBR jointly believe in facilitating the exporters in order to contribute in the economic prosperity of Pakistan.
Both are working closer like hands in gloves in order to facilitate the taxpayers and exporters. With the best efforts and productive proposals of PHMA, the FBR’s FASTER and WEBOC Systems have been improved and working efficiently and exporters are getting their refunds online smoothly and all credit goes to the then Member IR Operations & sitting Chairman FBR, Dr. Muhammad Ashfaq Ahmed, Member Customs Operations FBR Syed Muhammad Tariq Huda and their team who eliminated human intervention and brought automation and reforms in the FBR System to facilitate the exporters.
He also appreciated the Government’s initiative of the “Pakistan Single Window (PSW)” portal is to provide a single electronic platform for facilitating compliance with the regulatory regime for cross-border trade in Pakistan.
Bilwani assured that PHMA shall also extend complete support to Customs with regards to the implementation of EFS 2021. PHMA has also introduced EFS Help Desk at its RDA Cell to support member exporters.
Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim addressing the leading exporters stated that the FBR believes in maximum facilitation to exporters enabling them to enhance exports to ultimately benefit the country to earn foreign exchange. He apprised that the FBR has been continuously working to improve and develop the taxation system through reforms and automation.
In this connection, automation has been enhanced and public dealing has become limited particularly for the exporters. Introduction of export facilitation scheme 2021 is another milestone step from Customs to provide three scheme i.e. Export Oriented Unit, Manufacturing Bond, DTRE under a unified scheme which will benefit exporters particularly SMEs.
The new scheme is simplified wherein exporters can apply online without visiting Custom House. Focal Person shall also be appointed to promptly address the queries and maximize facilitation to exporters.
Moeen Afzal Additional Collector, Model Collectorate of Customs (Exports) Port Qasim gave a detailed presentation on the main feature of Export Facilitation Scheme 2021 wherein he informed that the new scheme will run parallel with existing schemes such as Manufacturing Bond, DTRE and Export Oriented Schemes for two years.
The existing old schemes shall be phased out in the next two years and will be fully replaced by Export Facilitation Scheme-2021. The EFS 2021 Rules can be accessed at the official website of the FBR.
The powers, functions and role of the Input-Output Coefficient Organisation (IOCO) under the new scheme has also been revised. The IOCO Director shall upload the value of input.
It is expected that the Export Facilitation Scheme 2021 will reduce the cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating sales tax refunds and duty drawbacks for the users of the scheme, and shall attract more users and shall ultimately promote exports. Inputs include all goods (imported or procured local) for the manufacture of goods to be exported.
These include raw materials, spare parts, components, equipment, plant, and machinery. No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero-rated.
Through this new scheme, Common Export House will import inputs duty and tax-free for subsequent sale to the authorized users especially SMEs. This scheme will encourage new entrants and SMEs.
This scheme will be completely automated under WeBOC and PSW where users of the scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems.
In the end, exporters asked several questions related to the new schemes which were answered by the Collector and Additional Collector, Model Collectorate of Customs (Exports) Port Qasim.
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Value added textile exporters demand 50 percent reduction in withholding tax
KARACHI: The association of value added textile exporters on Wednesday demanded to reduce the withholding income tax by 50 percent in order to reduce burden on manufacturers and improve country’s foreign exchange earnings.
In a joint press conference, the exporters demanded the government of restoring Zero Rating – No Payment No Refund System, continuation of Duty Drawback of Taxes (DDT) & Technology Up-gradation Fund (TUF) scheme, reduce WHT rate to 0.5 percent, suspension of Export Development Fund (EDF) surcharge, reduce and fix tariffs of electricity, indigenous gas & RLNG, continuation of duty free import of cotton yarn in the forthcoming Federal Budget 2021-2022.
Zubair Motiwala, Chairman, Council of All Pakistan Textile Mills Associations; Jawed Bilwani, Chairman, Pakistan Apparel Forum; Tariq Munir, Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Rafiq Godil, Chairman, Pakistan Knitwear and Sweater Exporters Association; Feroze Alam Lari, Chairman, Towel Manufacturers Association of Pakistan; Abdus Samad, Chairman, Pakistan Cloth Merchants Association, Zulfiqar Ch., Chairman, All Pakistan Textile Processing Mills Association; Shaikh Shafiq, Former Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association; Khawaja M. Usman, Former Chairman, Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association, Amin Allana, Chairman, All Pakistan Bedsheets & Upholstery Manufacturers Association, Yusuf Yaqoob, Chairman, Pakistan Weaving Manufacturers Association participated in the Joint Press Conference held at PHMA today.
The Chairmen of the Value Added Textile Exports Associations apprised that they have submitted Budget Proposals to the Federal Government wherein the top demand is to restore Zero Rating on GST – “No Payment No Refund Regime” through revival of SRO 1125 in letter & spirit as SME exporters have been closed down and decreased by 30% as compared to last year due to imposition of 17% which blocked exporters precious liquidity. They were of the view that the textile exporters are optimistic and hopeful that the Government in the Federal Budget 2021-22 will seriously consider and accept their demands, proposals and recommendations.
They highlighted that despite COVID19, the textile exports have increased by 17.35% as compared to last year and will InSha-ALLAH reach to US$ 15.50 billion in FY 2020-21 owing to incumbent Government’s pragmatic policies – payments of Drawback of Local Taxes & Levies (DLTL) / Duty Drawback of Taxes (DDT), special / competitive tariff and uninterrupted supply of utilities. They stated that It is on record that due to commencement and payments of DLTL Scheme in 2009, the Textile Exports have increased by 7.3% in 2010 and by 35% in 2011. However, in 2012, textile exports were decreased by 10.66% due to withheld payments of DLTL. Therefore it is most crucial that the Government must continue the DDT scheme for the next five years. They demanded that Duty Drawback of Taxes on Garment, Home Textile & Fabric exports should be provide @ 7%, 6% & 5% respectively on shipment basis for next five years to compete in the international market as competing countries are extending same around 12% to 16%. With commitment, the rates will be increased every year by 1% which means 7%, 6% & 5% in 2021-22, 8%, 7% & 6% in 2022-23, 9%, 8% & 7% in 2023-24 and so on, respectively. Further, Incremental DDT, on an increase of 10% exports over previous year, should also be provided @ 2%. This will bring huge investments in textile sector and shall encourage new-comer exporters to invest in textile sector.
They said that with the introduction of Technology Up-Gradation Fund (TUF) scheme in 2009, 30% Capacity of Textile Sector has been enhanced. Therefore, it is imperative to reinstate Technology Up-Gradation Fund (TUF) Scheme for next five years. This will bring up-gradation and advancement in technology leading to production enhancement as well as exports. 0.25% Export Development Fund (EDF) Surcharge is deducted from export proceeds of the exporters for export development since 1992. Collection of EDF surcharge is approx. Rs9 billion annually. Presently Govt. has Rs58 billion in its kitty on account of EDF. Hence, they demanded to the Government to suspend collection of Export Development Surcharge till unutilized amount of Rs58 billion of Export Development Fund (EDF) is exhausted. Exporters fall under Final Tax Regime and required to pay 1% WHT of their export proceeds. They demanded that Withholding Tax (WHT) should be reduced from 1% to 0.5% for exporters as this would also help the exporters in using the cash liquidity for enhancement of the exports.
The present Government had announced separate tariff of gas and electricity for export sectors with an assurance that this tariff will last for 3 years. However, tariff of gas and electricity was enhanced after a year. To compete in the internationally and capture more markets, it is crucial that tariff of Electricity, Indigenous Gas and RLNG for exporters should be fixed at 7.5 cents/kwh, Rs819/MMBTU and $6.5/MMBTU respectively for next five years and the same should be applied countrywide.
Owing to historically low cotton production in the country and severe shortage of cotton yarn, on demand of the Value Added Textile Sector, Government has allowed duty free import of Cotton Yarn till 30th June, 2021. We understand that the Government should continue duty free import of cotton yarn until Pakistan’s cotton production reaches to 14 million bales. They recommend that permission for import of Raw Materials and Intermediate Goods for manufacturing of finished goods meant for export under Duty & Tax Remission for Exporters (DTRE) should be automated and allowed to registered Textile Exporters through Ministry of Commerce Textile Industry’s RDA Cell whose licence is renewed after every two years as RDA Cell, Textile Division, Ministry of Commerce has complete details of textile units i.e. production, exports, machinery, exportable items details including HS Codes, Value, Quantity etc. Subsequently, once RDA Cell approves the permission for import of Raw Materials and Intermediate Goods under DTRE and it should be processed on fast track within 48 hours by Customs, accordingly.
It is pertinent to mentioned that Value Added Textile Exports contribute to around 62% in total exports, provides 42% urban employment particularly to female workforce who mostly are widows and orphans, earns highest foreign exchange and supports approx. 40 allied industries. In this manner, the value added textile industry playing pivotal role to strengthen the economy and prosperity of the country. They were of the view that the exports must remain top priority of the Government as it is the lifeline of economy deserves government’s continuous support. If the Government assures to extend the deserving support to the Value Added Textile Export Sector it has the capacity to achieve the milestone and pledges to enhance its exports by 30% and will reach at US $20 billion in FY2021-22 and shall increase by 25% every year onward 2022-2023 resulting to surplus trade of Pakistan, more foreign exchange earnings & additional employment.
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Industry perturbs over rampant street crime
KARACHI: Business community is worried over rampant incidents of street crimes in the metropolis ahead of Eid holidays, according to a statement issued on Tuesday.
The statement issued by Pakistan Hosiery Manufacturers Association (PHMA) informing the Chief Minister of Sindh about the rampant incidents of car snatching and stealing valuables and expensive parts from a vehicle parked out on the side of a road and cash snatching withdrawal from banks.
Member industrialists have approached the Association conveying their genuine concerns sense of insecurity and said that it seems that police and other law enforcement agencies are busy in lockdown activities due to COVID19 and the general public are deprived of their valuables.
One incident has taken place at Jamia Masjid Faruq e Azam near Boat Basin where a person has parked the vehicle to offer Asr Namaz when arrived back mirror of the vehicle was broken and valuables were stolen by the thieves.
The whole theft was wrapped up in 2-3 minutes and even more perturbing is the fact that all this happened in broad daylight.
No wonder, they don’t need the cover of darkness. The public is quite afraid and avoids going for even Namaz in the masjid when they are commuting on their vehicles due to increased incidents of stealing and snatching.
“We have also enquired from the suppliers/shopkeepers of parts market and they informed that the sale of the side mirror, window glass, and back glasses has increased manifold during last 2-3 weeks and stated that they have never seen such a historic sale in their whole life which is alarming,” according to the statement.
It is the need of the hour to take immediate safety measures and strict action against the criminal elements area otherwise all the efforts in the past which revived peace and security will go in vain.
Therefore, the gravity of the situation demands your immediate intervention and direct the police department to increase the patrolling and deploy policemen on key points of the areas for the safety and security of the karachiities.
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Value-added textile demands allowing cotton yarn import from India
KARACHI: Value-added textile sector on Tuesday demanded the government of allowing cotton yarn from India as it was done in case of pharmaceuticals.
In an online meeting with Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile, the representatives of value added textile sector said that without discrimination, in order to overcome the scarcity of yarn in the Pakistan, as the government previously allowed for import of pharmaceuticals, “it is also most crucial to allow import of cotton yarn from neighbouring country through Wagah border as the quality yarn is not available and prices are also multiplied to manifolds.”
Wagah is a union council of Pakistan bordering with India.
Allowing import of cotton yarn was demanded by Value-Added Textile Associations – Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations (CAPTA), Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum, Riaz Ahmed, Central Chairman Pakistan Hosiery & Manufacturers Exporters Association, Tariq Munir, Zonal Chairman (SZ), Farukh Iqbal, Sr Vice Chairman PHMA (NZ), Ijaz Khokhar, Former Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association, Haroon Shamsi, Former Chairman, Towel Manufacturers Association and Zia Alamdar, Former President, Faisalabad Chamber of Commerce & Industry in an online meeting held with Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile.
The council raised: “The government, through Presidential Ordinance, must abolish all duties and taxes and allow duty free import of Cotton yarn which is the raw material of value-added textile sector in order to sustain and achieve milestone in enhancement of exports.
“The government should also place ban on export of cotton yarn of 30 single or below till June 2021 ensuring availability of quality yarn to facilitate export sector to complete their export orders without hassle and unrest.
“In view of shortage of wheat and sugar, the Government had allowed to import wheat and sugar and also banned their export to cater the national needs.”
Likewise, anti-dumping duties on goods imported meant for re-export by Export Oriented Units and Manufacturing Bond should also be abolished. Moreover, to turn vision of the Prime Minister for enhancement of exports into reality and to control the declining trend in exports, the government should freeze the special tariffs of 7.5 cents for electricity and $ 6.5 for gas for at least next three years and provide uninterrupted and quality electricity and gas providing level playing field and competitive environment to enhance their export efficiency and materialize all exports orders.”
The value-added textile sector has emphasized that the vision of Prime Minister Imran Khan for industrialization, increasing exports, creating trade surplus, generation of employment opportunities and earning precious foreign exchange shall become possible only when raw material – cotton yarn and uninterrupted supply of utilities is ensured on special tariffs approved for export-oriented industries. The Value-added Textile Exporters are highly worried over the unavailability of cotton yarn – which is basic raw material in the local market despite huge export orders are available with the value added textile.
On the demand of textile exporters, the government, previously, considered removing the Regulatory Duty only. Sense of severe unrest and uncertainty prevails as exporters feel it “discriminatory” because in the case of cotton, the government had allowed complete duty-free import.
Removal of Regulatory Duty has supported the value-added textile sector to some extent, whereas, the situation necessitates and demands to also remove the Customs Duty to fully support the value-added textile sector to complete their export orders which they have materialized for the next several months.
The gravity of situation demands the government to immediately abolish Customs duty on import of cotton yarn by passing through a Presidential Ordinance, in the interest of export and the country.
The Associations also expressed severe concern on the recent announcement of the Federal Government regarding discontinuation of gas to the industrial captive power plants which depicted a bleak picture in eyes of foreign buyers across the globe, particularly of US & EU who become doubtful as to how the Pakistani exporters will complete export orders?
The buyers have also communicated that since there will be no gas and orders cannot be completed, therefore, they are thinking to divert the export orders given to Pakistani exporters to other countries.
The Associations’ representatives lamented that 225 CPPs of Industries in Sindh were closed abruptly. The Government later clarified that the announcement was related to energy efficiency benchmark.
The Associations reacted that the CPPs of industries were more efficient and productive as compared to CPPs of utility companies. More than a decade back the export industries invested in CPPs on the offer of the then Government when the utility companies were failed to provide required quality electricity and there were load-shedding problems.
Now the sitting Government is asking to close the CPPs and take electricity from utility companies which is totally contradictory.
The Associations stated that the utility companies neither have the required quantum of electricity to supply to industries nor have the adequate infrastructure available for the purpose, thus, the Government must refrain from such unwise move which will bring disastrous effects on industries and exports.
Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile gave patient hearing to the issues and problems confronting to the Value-Added Textile Industry and assured that he will take up the matter with the Prime Minister and Cabinet and the Government will consider and resolve some of the issued highlighted in the meeting.
Value Added Textile Export Industry contributes around 62 percent in total exports, provide highest urban employment particularly to female workforce and supports approx. 40 allied industries.
In view of its significant importance in the economy and free market mechanism, the Government must consider the appeal of value-added textile sector for duty-free import of cotton yarn to ensure availability of cotton yarn of good quality.
Such state of affairs demands the Government to remove 5 percent custom duty on import of 30 single yarn and below count and the exporters, manufacturers and importers, shall be given full liberty to import yarn from any country till the scarcity of cotton yarn is controlled and required quantity of yarn is available in abundance in all Pakistani markets to complete the export order smoothly.
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Exporters demand customs duty waiver on cotton yarn
KARACHI: Value-added textile exporters on Tuesday demanded the government of abolishing customs duty on import of cotton yarn to support the industry and ensure timely completion of export orders.
“The gravity of situation demands the government to immediately abolish customs duty on import of cotton yarn either by passing through a Presidential Ordinance or by an immediate act of Parliament, in the interest of export and the country,” said Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum & Former Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) in a statement.
The value-added textile exporters are highly perturbed over the unavailability of cotton yarn – which is basic raw material in the local market despite huge export orders are available with the value added textile.
However, where cotton yarn is available is of sub-standard quality owing to which exporters are unable to meet export commitment. To ensure availability of cotton yarn, PHMA had earlier demanded the Government to allow duty-free import of cotton yarn to facilitate Value-added textile export sector to achieve milestone in exports as cotton yarn was unavailable in the local market.
Nevertheless, the government considered removing the Regulatory Duty only. Sense of severe unrest and uncertainty prevails as exporters feel it “discriminatory” because in the case of cotton, the Government had allowed complete duty-free import.
Removal of regulatory duty has supported the value-added textile sector to some extent, whereas, the situation necessitates and demands to also remove the customs duty to fully support the value-added textile sector to complete their export orders which they have materialized for the next several months.
The government must realize the sensitivity of the matter to support the value-added textile exports as due to unavailability of cotton yarn, the prices of cotton yarn of 30/1 were 235 per pound during the month of October 2020 and now in January 2021 were 260 per pound there has been an increase in the yarn rates by 9.62 percent which has also brought an upshot in the cost of manufacturing pushing the exporters towards unviable situation and un-competitiveness.
The gravity of situation demands the government to immediately abolish customs duty on import of cotton yarn either by passing through a Presidential Ordinance or by an immediate act of Parliament, in the interest of export and the country.
The government must accord high priority to the matter in order to turn its policy to enhance export into reality. The exporters profoundly appreciate the government for streamlining and fully automating the sales tax refunds which have been working efficiently and delivering 99 percent result.
While the customs rebate disbursement has also been done rapidly with deliverance of 99 percent. The exporters also request the government to also streamline and automate the system for disbursement of DLTL/ DDT which should be electronically transferred to the exporters with export proceeds.
Value Added Textile Export Industry which contributes around 62 percent in total exports, provides highest urban employment particularly to female workforce and supports approximate 40 allied industries.
In view of its significant importance in the economy and free market mechanism, the government must consider the appeal of the value-added textile sector for duty-free import of cotton yarn to ensure availability of cotton yarn of good quality.
Such state of affairs demands the government to remove 5 percent custom duty on import of 32 single yarn and below count and the exporters, manufacturers and importers, shall be given full liberty to import yarn from any country till the scarcity of cotton yarn is controlled and required quantity of yarn is available in abundance in all Pakistani markets to complete the export order smoothly.
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FBR developing software to eliminate bogus invoices: CTO Chief
KARACHI: Federal Board of Revenue (FBR) is working to develop a new software which will eliminate flying / bogus invoices, Dr. Aftab Imam, Chief Commissioner, Corporate Tax Office (CTO) Karachi said during his visit to Pakistan Hosiery Manufacturers Association (PHMA).
The chief commissioner assured the exporters that all the issues of exporters will be resolved on top priority without delay, a statement issued by PHMA on Saturday quoted the chief commissioner as saying.
The chief commissioner stated that exporters may personally visit his office to meet and discuss their individual issues in order to resolve them. He stated after transformation to FASTER plus, the sales tax refund system was efficiently processing the claims. There were certain checks in the system which was necessary.
He said that CTO was playing its due role in policy making by communicating the matters and issues related to exporters by sending to the Board for implementation thereof.
Commenting on the Post Refund Audit notices, he added that all the income tax notices issued bear a barcode while the Post Refund audit notices regarding sales tax bear no barcode, however, they are valid notices.
The system is going through developmental phase and in next few weeks Post Refund Audit notices issued shall also reflect the barcode.
Replying to huge demand of documents in the notices, he opined that particular documents which are not available in the online system like stock and proof of payment should be given.
Responding to the requests of issuance of zero rated certificates, he informed that he has already written to FBR for the purpose. Upon confirmation, the requested certificates shall be issued on urgent basis.
Earlier Tariq Munir, Chairman (SZ), Pakistan Hosiery Manufacturers & Exporters Association welcomed the Dr. Aftab Imam, Chief Commissioner, Corporate Tax Office (CTO) Karachi who was accompanied by Zulfiqar Khokhar, Collector to PHMA.
Speaking on the occasion, Muhammad Jawed Bilwani, Chief Coordinator & Former Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association invited the attention of Chief Commissioner CTO-Karachi on burning issue of exporters related to Sales Tax Refund / Audit, Income Tax Refund / Audit, Zero Rated Certificate for reduced tariff of electricity and gas and other issues.
He was of the view that after a lapse of 16 months, after various consultative sessions, suggestion of exporters, FASTER refund system has been improved and also transformed to FASTER plus which is appreciable as the system is efficiently processing the refunds electronically up to 80 percent without human involvement.
Remaining 20 percent may have some issues of filing which after resolution shall also be processed on fast track.
He was of the view that due to speedy refunds increasing trend in textile exports is witnessed. He stated that several members have informed that still amounts are missed and deferred in the FASTER system which should be looked into and rectified. He proposed that total missing amount should be reflected in the Sales Tax Refund MIS.
Bilwani also highlighted the matter of Notices of Post Audit Refund of Sales Tax as well as Income Tax issued to exporters demanding huge documentation which is already available with FBR system and same should be done away with and only necessarily required relevant documents should be demanded because the entire textile export chain is documented.
He also urged that all the FBR Notices should have barcodes and should sent electronically. The exporters should be provided the facility to apply for zero rated certificate regarding reduced tariff of gas and electricity to FBR and same should also be provided electronically.
FBR and SRB system are linked and integrated. exporters are in practice to adjust WWF amount against income tax refund. Hence, the FBR should intimate to the SRB that the exporters have paid the WWF amount.
On this occasion, Abdul Jabbar Gajiani, Senior Vice Chairman, Bashir Ghaffar Vice Chairman, Khizer Mehboob, Chairman, Taxation Committee, Abdur Rehman Former Vice Chairman PHMA, Saleem Parekh, Qadir Bilwani, Ilyas Gigi, Advocate Arshad Shehzad, Tax Advisor presented and other member exporters through zoom participated in the meeting.