Through e-mail

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
Dated: 24th January, 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.

  In order to promote local industry and boost exports, import duty on hundreds of raw items used for manufacturing were being reduced or exempted.

  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.

  Additional export facilitation measures and duty drawbacks would be informed the Adviser for Commerce.

  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).

  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.

  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.

  Regulatory duty on import of hundreds of tariff lines was either being reduced or abolished.

  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.

  Tax exemptions were introduced to attract new investment in Specialized Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC) and other industrial units.

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Thanks & Best Regards,

 

M. Jawed Bilwani

M. Adil Butt

Umair Mianoor

Central Chairman

Zonal Chairman, NZ

Zonal Chairman, SZ