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PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi. Tel:
0092-21-34522769, 34522685, 34544765 Fax: 0092-21-34543774, E-mail: info@phmaonline.com Ref. No. PHMA/Cir-006/2019 To:
All Members of the Association (Southern Zone & Northern Zone) Mini Budget 2019 Govt incentive package
related to exports and manufacturing The
government on Wednesday, 23rd January, 2019 announced an incentive package to
boost manufacturing and exports, besides promoting ease of doing business,
simplifying procedures for setting up businesses, and cutting taxes and duties
in diverse sectors. Ø In order to promote
local industry and boost exports, import duty on hundreds of raw items used for
manufacturing were being reduced or exempted. Ø The government has
decided to issue refund bonds (promissory notes) to exporters, on annual profit
of 10 percent with a maturity period of three years, for clearance of backlog
of Rs200 billion stuck-up refunds which would ensure liquidity for their
businesses. Ø Additional export
facilitation measures and duty drawbacks would be informed the Adviser for
Commerce. Ø In order to facilitate
exporters, complete revamping of export promotion schemes like DTRE and
Manufacturing Bonds, and Export-Oriented Units is underway for optimal
utilization by exporters in the Small and Medium Enterprises (SMEs). Ø The government intends
to support the industry through this business revival package. It is thus
proposing a settlement of GIDC arrears and a reduction in overall rate of GIDC
for all sectors in an effort to reduce cost of doing business in the country. Ø To facilitate ease of
doing business, the government had proposed that businessmen would not be bound
to submit their statements of withholding tax every month, but twice a year. Ø Regulatory duty on
import of hundreds of tariff lines was either being reduced or abolished. Ø
It
had also been proposed to reduce the tax rate on interest income on bank loans
taken by Small and Medium Enterprises (SMEs) companies from existing 35 percent
plus 4 percent supper tax to net 20 percent. Ø Tax exemptions were
introduced to attract new investment in Specialized Economic Zones (SEZs) under
the China Pakistan Economic Corridor (CPEC) and other industrial units. ****** Thanks
& Best Regards,
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