The Sialkot Chamber of Commerce and Industry (SCCI) has urged the government to clear the backlog of claims under the Local Taxes and Levies Drawback (LTLD, non-textile) and Duty Drawback of Taxes (textile).
In a statement issued on Friday, SCCI President Qaisar Iqbal Baryar has appealed to the federal government for an emergent release of funds to clear the backlog of claims under the ministry of commerce’s local taxes and levies drawback (non-textile) order, 2018 and duty drawback of taxes (textile), 2018. He said that one of the biggest issues being faced by the SME-based export industry is the liquidity crisis which has aggravated since the Covid-19 pandemic as the exporters are finding it difficult to manage their operational expenditures despite having confirmed orders.
He said that exporters rely heavily on the timely clearance of claims under various incentive schemes of the government. He lamented that pendency in the clearance of LTLD and DDT claims had created immense financial problems for the industry especially in the month of Ramazan during which exporters have to clear the bills of the vendors.
Baryar shared that a significant number of cases have piled up at the State Bank of Pakistan, Sialkot, that are ready for payment but pending clearance. He requested Abdul Razak Dawood, Advisor to PM on Commerce, that as per the promise of the federal government to clear the backlog, all the pendency pertaining to LTLD and DDT cases be cleared to provide essential relief to the export sector of Sialkot.
