PHMA for clearing all sales tax refunds before 31st

LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Chairman Dr Khurram Anwar Khawaja on Tuesday urged the government to clear all the verified sales tax refunds of exporters (under the PM Package) before the end of May 31.

Dr Khurram said in a media statement here that billions of rupees against previous Drawback of Local Taxes & Levies (DLTL) Order 2009 since 2011; Incremental DLTL Order 2014-15 since June 2015; Incremental DLTL Order 2015-16 since April 2016; Incremental DLTL Order 2016-17 since April 2017 and DDT under PM Export Package 2017 of exporters were pending with the relevant government department causing liquidity problems for the exporters in keeping up their export commitment, which must be released before May 31 to streamline the cash flow.

He said that GSP Plus status had opened tremendous opportunities by way of inflow of abundant export orders which the industry would not be able to execute if liquidity problem of the industry was not resolved at the earliest. He also called for acknowledging the role of value-added apparel sector for its potential to harvest maximum benefits of GSP Plus, providing mass employment to the jobless population of the country.

Dr Khurram Anwar Khawaja was of view the benefits of the renewed GSP Plus status could only be harvested by maximum value-addition in finished products rather than exporting only raw materials, which could not be possible without relaxation in import policies.

He urged that the government to immediately clear the verified duty drawback tax claims submitted to the Federal Board of Revenue under the Prime Minister's export package before the expiry of current government term.

He said that verified sales tax stuck up refunds should be cleared by the present government before May 31, as handing over this matter to the interim government would cause further delay and create hurdle in exports promotion.

He proposed that separate examination areas of exports consignments for inspection of goods at terminals must be allocated, and steps should be taken to abolish all the duties and taxes imposed on the polyester yarn, enabling the knitwear and sportswear industry to compete with the international market and to earn valuable foreign exchange.

He also called for simplifying the process of DTRE allowing the garment stitching units - manufacturers-cum-exporters to import yarn and raw material for manufacturing goods meant for export.