Duty drawback rates draw fire from PLGMEA
Mr Fawad Ijaz Khan, Chairman Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has attacked the government’s latest action in reducing the Duty Drawback rates that apply to exports. The rates have been reduced in line with the reduction seen in the Custom Duties in the Federal Budget 2004-2005. Mr. Fawad said it was previously the practice of CBR to involve the relevant trade associations whenever it planned to revise Duty Drawback rates. And where any reduction was made, a minimum period of three months notice was given.
On this occasion, however, notification had been received via the Input-Output Co-efficient Organisation (IOCO) in
The fact that many PLGMEA members imported their dyes & chemicals well in advance of when they actually used them also meant exporters would now lose out in relation to chemicals already purchased, Mr Fawaz continued, adding that the PLGMEA was already dissatisfied at drawback rate situation. He said the decision had been taken in spite of an assurance made to the PLGMEA membership on June 23 by Mr Zafar-ul-Majeed Member Exports, that no decision on the drawback rates would be taken until the IOCO had conducted a proper survey of the industry.
Mr Fawad also reported a 4% rise in PLGMEA exports during 2003-2004 to $403m, further increases had been jeapordised by the PLGMEA decision. In the light of this, he said he had asked Mr Zafar-ul-Majeed to conduct a fresh survey of the industry and that any decision should be held over until its final results were known.
