PHMA seeks 6% DLTL for all exporters, 2% extra for new markets

Key Points:

PHMA North Zone Chairman Mian Farrukh Iqbal urges the government to restore the 6 per cent DLTL for all eligible exporters, with no export-growth conditions.
He seeks an additional 2 per cent incentive on exports to non-traditional markets, for five years from FY 2026-27.
Exporters already bear about 7.38 per cent in taxes and levies, while Bangladesh offers combined incentives of up to 10 per cent.

FAISALABAD: Exporters already pay about 7.38 per cent in taxes and levies, putting them behind regional rivals.

According to the PHMA handout, Mian Farrukh Iqbal, the association’s North Zone chairman, urged the Federal Government to restore the Drawback of Local Taxes and Levies (DLTL) at a uniform 6 per cent of FOB export value for all eligible exporters.

He said the 6 per cent DLTL should apply to all eligible exporters without any export-growth conditions, with an additional 2 per cent incentive for exporters exploring non-traditional markets. He urged the government to announce the package for five years from FY 2026-27.

Mr Iqbal said the additional incentive would encourage geographical diversification, develop new international destinations, attract fresh investment and enhance Pakistan’s foreign exchange earnings.

He added that the restoration would cut the cost of doing business, improve export competitiveness and provide relief to the value-added textile and apparel sector.

He noted that exporters in Bangladesh receive a 5 per cent cash incentive on eligible locally sourced textile exports, 2 per cent for new products or markets and 3 per cent for eligible SME garment exporters, with combined incentives reaching up to 10 per cent.

Turning to India, Mr Iqbal said the Remission of State and Central Taxes and Levies (RoSCTL) provides rebates of about 4.9 to 6.05 per cent on apparel products and up to 8.2 per cent on eligible made-up products.

PHMA North Zone Warns Rate Hike Will Hit Textile Exports

According to Mr Iqbal, Pakistani exporters face high energy costs, taxation, expensive financing and rising production expenses while their regional rivals enjoy such support.

Commenting on the recently announced Performance-Based Rebate on Incremental Exports (PRIE), Iqbal noted that it offers a 1 per cent rebate on incremental export value for growth of up to 10 per cent and a 2 per cent rebate for growth above 10 per cent.

He expressed concern that linking incentives only to export growth could exclude a large part of the industry at a time when exports are falling and exporters struggle to recover lost orders and maintain their existing international business.

The 6 per cent DLTL should apply to all eligible exporters without any export-growth conditions.

He stressed that the industry needs a broad-based incentive mechanism supporting all eligible exporters, which would help revive export operations, encourage new investment, create more jobs and expand Pakistan’s share in global markets.

He also called for a stable, predictable and long-term policy framework so exporters can plan investment, expand production, introduce new products and secure long-term international orders.

اردو میں پڑھیں