The government has notified long-awaited duty drawback package for exporters to reverse the declining trend of exports, commerce minister said on Friday.
“The required notifications for both the textile and non-textile sectors based upon the announcement made by the Prime Minister to give duty drawback package to exporters has now been issued and the required circular is expected any day,” commerce minister Khurram Dastgir Khan said in a statement.
“All the procedural formalities have been completed and very soon the exporters will be able to take advantage of the package, as it will be available for exporters from January 16.”
Khan was speaking at an inter-ministerial meeting attended by textile and commerce secretaries. In early January, the government announced Rs180 billion incentives package to exporters to boost the country’s exports by around $3 billion by the end of June 2018.
Under the package, sales tax, Customs duty on import of textile machinery and cotton have been abolished. The country’s total exports between 2013 and 2015 declined more than 12 percent.
Under this package the exporters will be liable to increase exports by five percent from January to June 2017 and then by further 10 percent in the financial year 2017/18. The minister said this package would generate employment opportunities and revive closed factories of the country.
The duty drawback for garments would be seven percent, textile made-ups six percent, processed fabric five percent, yarn and grey fabric four percent, sports goods, leather and footwear seven percent and carpets and tents five percent. Similarly, the government abolished import duty on cotton and also revoked customs duty on man-made fibre other than polyester and sales tax on import of textile machinery has also been abolished.
There will be no condition on getting duty drawback in first six months (January to June) of the scheme. However, exporters will have to record 10 percent growth in exports during next fiscal year 2017-18 as compared to the ongoing financial year. The package is expected to enhance the country’s exports by $2.5 to $3 billion by the end of June 2018.
Source : https://www.thenews.com.pk