MULTAN,Oct 21st: The business community of South Punjab and Textile mills Association have hailed the notification of Ministry of Textiles for further relaxations in Prime Minister Package of incentives for exporters. describing it an appropriate step. President of Multan chamber of Commerce & Industry (MCCI) Malik Asrar Ahmed Awan said that it was a long standing demand of the export oriented industry.According to “Duty Drawback of Taxes Order 2017-18”, 50 percent of the rate of drawback will be provided to exporters without condition of increment,. While, remaining 50 percent of the rate of drawback shall be provided only if the exporter achieves an increase of 10 percent or more in exports during performance year (FY 2017-18), as compared to the base year (Financial year 2016-17).In the actual package announced on January 23, the duty drawback was offered to exporters, who would achieve an increase of 10 percent or more in exports over last year (2016-17).Malik Asrar awan said that On our pressure, the government issued this new notification allowing half of the promised drawback without any condition, while for remaining half the exporters should exceed their exports from the base year.He further said that the actual rate of drawback will be determined on the basis of annual performance of the exporter, but in order to improve the cash flow, the disbursement will be allowed on the performance during July-December, 2017, subject to submission of a bank guarantee that the exporter will return the excess amount, in case his/her annual exports are less than the amount of drawback paid, the new notification said.MCCI Chief said that Government further promised an additional 2 percent drawback for exports to non-traditional markets, including Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania. The duty drawback will be applicable to manufacturing-cum exporting units on export of products under specific Tariff Codes of the Pakistan Customs Tariff at rates specified along the notification. He further said that now export performance will be analysed separately for each category of eligible products. The units availing the drawback shall be registered with the Textile Division and use Textile Division’s online portal to follow subsequent circular issued by State Bank of Pakistan.
