Pakistan Agriculture News

Govt paid Rs 20,241mn to textile sector for sales tax refund claims

ISLAMABAD: The government has paid Rs 20,241 million sales tax refund to textile sector during current financial year in order to facilitate the local exporters for enhancing exports of the textile products as well as industrial development in the country.

In order to develop and promote the local industrial sector particularly textile industry, the government had initiated various schemes for the facilitation of exporters and to sustain the textile exports, said an official in the Ministry of Commerce and Textile Industry.

In this regard, he said that  from July 2016, five exports oriented sectors including textile have been made part of zero rated tax regime aiming at enhancing the local exports.

He informed that zero rating facility was available on purchase of raw material, intermediate goods and energy and during current financial year Rs 20,241 million were paid for the sales tax refunds, where as the total payable up to November 2017 was stood at Rs 37,115.

During the period under review, the government had received 40,084 claims of deferred sales tax amounting Rs 14,258 million, 10,831 fresh claims worth of Rs 18,443 million and 2,153 claims of RPOs valuing Rs 4,413 million, he added.

Meanwhile, the government had also paid Rs 2,625 million on custom duty drawback during current financial year, where as pending liabilities up to October, 2017 were recorded at Rs 8,375 million, he remarked.

He further said that duty drawback of taxes under Prime Minister Package 2016-17, the total claims by the end of December, 2017 was recorded at Rs 28,920 million and government had allocated Rs 16,500 million for the payment of the claims.

The State Bank of Pakistan had disbursed an amount of Rs 14,381 million among the exporters,where as Rs 2,119 million were still available with SBP for disbursement.

He informed that the government has also provided Rs. 1,154 million by June 30, 2017 for mark up support facility under textiles policy 2009-14 and Rs 35 million for increased employment in order to develop and promote the local textile sector.