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: firstname.lastname@example.org
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 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 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 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.
Thanks & Best Regards,