Technology Upgradation Fund Scheme introduced to facilitate textile

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Technology Upgradation Fund Scheme introduced to facilitate textile

ISLAMABAD, Sept 10 (APP): The government has formulated a Technology Up-gradation Fund (TUF) Scheme to facilitate textile sector and enhance exports.

Currently, the scheme is under process in State Bank of Pakistan, sources at Textile Industry Division said.

Highlighting the measures introduced to facilitate the said sector, the sources on Saturday said facility of duty free import of textile machinery will continue during 2016-17.

The government had allocated Rs. 6 billion for Textile Policy initiatives for 2016-17 while support schemes would also continue during this year which include:
Sales Tax of five export oriented sectors namely textile, leather, sports goods, surgical goods and carpets had been made part of zero rated tax regime from July 1, 2016 while all the pending sales tax refunds till April 30 whose RPOs have been approved, will be paid.

The existing scheme on Drawback of Local Taxes (DLT) will also continue in 2016-17.

The sources said in 2014-15, the government reduced mark-up rate on exports finance from 9.4 % to 7.5%. This rate was reduced in February 2015 to 6.0 %, and it was further brought down to 4.5 % from July 1, 2015.