Lahore, February 15, 2018 (PPI-OT): Pakistan Hosiery Manufacturers and Exporters Association has reiterated its demand of restoring Association role for timely, speedy and transparent disbursement of PM Revised Export Package for 2017-18, as the banks have failed to process the refund cases of exporters in a right way.
PHMA Chairman Dr. Khurram Anwar Khawaja said that most of the commercial banks have failed to establish separate section and appoint professional staff for verification of exporters’ refund cases. Majority of the banks/authorized dealers are also violating the SBP instructions to verify and forward the cases within 15 days due to lack of their capacity and expertise, he added.
He said that manufacturers and exporters of knitted garments are the largest industrial employment providing sector of Pakistan, besides earning about 2.5 billion US dollars annually through exports. He said that exports of the country during the past few years witnessed a decline but thanks to the Prime Minister Export Package 2017 that helped the export sectors to move upward again.
But the authorities, in its notification No.1 (42-A) TID/TR-II dated 12.12.2017, has created hurdles in transparent disbursement of PM Package by eliminating role of Associations. “It is the fact that the Trade Associations do have the capacity, capability and potential not only to implement the government’s incentive schemes but also to keep a vigilant check to curb any attempt to misuse the schemes.
Dr. Khurram said during Textile Quota regime misappropriation of billions of Rupees took place in the Export Promotion Bureau along with malpractices in its management. When quota management was handed over to Textile Associations, not a single event of corruption or malpractice came up and full utilization of quota was ensured.
He said that it is on record that subsidy scheme of the Ministry of Commerce for establishment of business offices abroad was totally mishandled by TDAP officers. “All the related funds were released to ghost companies and genuine exporters were deprived of their right. Their cases are still under trail. Had the scheme been managed by Associations, it could help in establishing Pakistan as a brand in the world markets.”
Moreover, the post- quota regime support policy for exporters like Research and Development Support announced in the year 2005 was perfectly managed by the Associations, he added. PHMA chairman said that Drawback of Local Taxes Levies (DLTL) scheme announced in the year 2009 was also managed by Associations without any corruption or misappropriation of any kind.
He observed that the Duty Drawback of Taxes (DDT) scheme announced under Prime Minister Export Package 2017 too was managed by the trade Associations in its true spirit. He said that the Associations not only provide guidance to exporters in filing their claim applications but also make sure that their applications are correct and in order. This helps the State Bank of Pakistan to process their claims in a smooth way and speedily.
Associations know the credentials of their members. While processing claim applications, Associations maintain a vigilant check to the extent that nobody could manage to play with government policies. “In the Sales Tax refund system, a situation always arrived in the FBR that more amount of refund was paid than the collected amount. This magic is played by the officials who manage to release funds expeditiously to bogus companies and the legitimate claimants remain deprived of their rights.”
He feared that the DDT scheme 2017 will not be managed properly, as the role of Association has been eliminated. “We like to reiterate that role of Associations should not be undermined rather this strong platform should always be used by the government to implement export promotion initiatives. We therefore demand that the clause relating role of Associations should be restored in the MINTEX Notification No. 1(42-A)TID/17-TR-II dated 12.12.2017 and the Commerce Division SRO No. 1248(I)/2017 dated 14.12.2017.”
For more information, contact:
Central Office,
Pakistan Hosiery Manufacturers and Exporters Association (PHMA)
PHMA House, 37-H, Block-6, P.E.C.H.S., Karachi, Pakistan
Tel: +92-21-34544789, 34522685, 34522769
Secretary General +92-21-34545683, 34544764
Fax: +92-21-34543774
Email: info@phmaonline.com, secretary.general@phmaonline.com
Website: http://www.phmaonline.com