Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Central Chairman Sheikh Shafiq Jhokwala has demanded the Government for extension in cut-off date of submission of incremental claims of Duty Drawback on Taxes (DDT) for the year 2018-2019 from 31st May 2020 to 31st July 2020 to facilitate textile exporters to submit their claims at convenience without difficulty, in view of global business slowdown and lockdown due to Corona pandemic. He urged the Federal Commerce Ministry to consider the request as working hours for the last almost two months were also reduced due to lockdown which has also slowed the working efficiency of industry. Therefore, in current scenario when national economy is also facing various challenges and Textile Industry of Pakistan is also confronting multiple problems, the Government should consider and facilitate textile exporters by extending cut-off date for submission of incremental claims of Duty Drawback on Taxes (DDT) for the year 2018-2019 from 31st May 2020 to 31st July 2020.

PRGMEA Central Chairman has drawn attention of the Government towards Ministry’s Notification No. 1(42-B)TID/18-TR-II dated 3rd August 2018 for Duty Drawback of Taxes Order 2018-2021 according to which the Government provided extension in Prime Minister’s Package of Incentives for Exporters in order to provide drawback of taxes collected from textile exporters. Duty Drawbacks on Taxes (DDT) under the Order shall be allowed for shipment made from 1st July 2018 to 30th June 2021 while the cut-off date for filing of claims for exports in each financial year shall be 31st July May of the subsequent year.

Sheikh Shafiq told that several member exporters approached PRGMEA informing that they have been facing inconvenience, amid economic slowdown and lockdown due to COVID19, to process and complete the procedural requirements as per Duty Drawback of Taxes Order 2018-2021 to submit their DDT incremental claims for the year 2018-2019 at Banks/ Authorized dealers by cut-off date 31st May 2020 which has already approached. Due to COVID19 textile industry of Pakistan was affected and remained totally closed for a period of around 2 months and industries resumed operations/ productions after special permission from the Government. Country has faced a complete lockdown situation from 23rd March 2020. In such a scenario, banks as well as SBP are open with reduced working hours and limited number of staff which has been causing delays. Last year the Ministry had also extended the cut-off date to 31st May 2019 to 31st July 2019, consequently, in view of current scenario, date of submission of DDT claims for year 2018-2019 must be extended from 31st May 2020 to 31st July 2020 with necessary advice to State Bank of Pakistan, accordingly.