SIALKOT             -         Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) in its budget proposals for 2020-21 called for various steps to promote industrialization and enhance exports. PRGMEA urged for coming budget business friendly, lowering cost of production, paying early refunds to solve liquidity crunch, relaxing import policy for industrial raw material and uplifting exports across the country, a statement said on Sunday. According to the budget proposal, PRGMEA seeks revival of SRO 1125 in its true shape and reintroduce the system of No Payment No Refund of Sales Tax for the five export-oriented sectors for one year. All stuck up claims of exporters Customs Rebates Sale Tax rebates should be released. The liquidity crunch is a major stumbling block in the way of improving exports. Apparel industry should be allowed to import fabric under SRO 492 scheme as weaving industry of Pakistan is unable to fulfil the demands of fashion wear. It is proposed that cotton yarn, the major raw material of the apparel sector should be exempted from all duties and taxes to encourage value addition.

PRGMEA suggested that the custom duty of seven per cent on import of polyester staple fibre including a range 20 per cent anti-dumping duty should be abolished to reduce the cost of production to compete in the market.  Apparel industry should be allowed to import fabric under the SRO 492 scheme as the weaving industry of Pakistan is unable to fulfil demand of fashion wear. Currently, the garment sector has a limited product line for the export market due to the non-availability of the latest fabric locally. Foreign buyers were demanding new garments based on G-3, G4 and technical fabric material. PRGMEA suggested that import of fabric should be allowed under SRO 492 instead of DTRE which is very complicated and only 2 per cent exporters can avail importation under DTRE facility while 97 per cent SME sector only can be facilitated under SRO -492 which was enforced previously. PRGMEA suggested that One Window Operation should be introduced for the replacing the lengthy procedures that involve interaction of manufacturers with various agencies.

The government agencies were harassing the textile industry every day. Social Security, EOBI and other taxes should be merged and deducted at the source. The government exchequer will receive more revenue if a reasonable per centage of realised amounts is deducted and many SMEs companies will be added in the tax net automatically, the proposal added.