Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Saturday warned federal government to approach Supreme Court of Pakistan over delay in sales tax refund payment to export sector if it would not come up with a timeframe and mechanism to resolve this issue.
Warning came from the apex trade body at a post-budget press conference when FPCCI president Ghazanfar Bilour spoke out about the inordinate delay in payment of sales tax refund to export sector and put the figure of sales tax refunds at Rs 400 billion, for which claims have been submitted with the government.
This amount accumulated during the last three years and it is now the moral and legal obligation to refund this amount to export sector before its departure.
Bilour said AGM and FPCCI executive committee have already passed the resolutions in favour of moving the apex court if the matter was not resolved to facilitate the export sector, which is facing immense hardships due to its stuck-up funds.
"We are seeking our due and just right in the form of sales tax refund and would be raising this issue with government when our delegation would meet with Finance Minister next week", Ghazanfar Bilour stated, who was endorsed by FPCCI senior vice president Syed Mazhar Ali Nasir,
who disclosed the planned meeting with Finance Ministry high ups in coming week.
FPCCI chief categorically stated that body would return with a firm assurance as well as a mechanism from the government to pay sales tax refunds.
About the federal budget 2018-19, Bilour said though it has many brighter sides in terms of providing relief to industry especially tax exemption for three years to new industries; it has even some darker sides where some sectors were completely left out to provide them relief in tax.
He said that construction and pharmaceutical industries have been deprived from any relief in the budget whereas SMEs are also neglected to benefit from any tax relief in the budget.
Bilour pointed out the items concerning common man like petrol, ghee and medicines didn't receive any special relief, which would affect the masses.
He also spoke about Alternate Dispute Resolutions (ADRs) committee and said now case would be first withdrawn from the court to present it in this committee.
Syed Mazhar Ali Nasir said anomaly committee would be constituted within one week time as per the discussion of FPCCI with the government. He said apart some industry-friendly measures; there are certain things in the budget, which didn't send positive signals to the business community.
FPCCI vice president Zahid Saeed said though the budget has been presented, but clouds of uncertainty are hovering over its fate.
He appealed to all political parties to sit together to agree on one point ie ensuring economic stability.
Saeed said 17 percent sales tax is imposed on inputs for pharmaceutical sector, which hinders to reduce the prices of medicines for the common man.
He also objected 17 percent sales tax on import of machinery and equipments for pharmaceutical industry and said high capital investment in this sector is blocking the flourishing of industry at faster pace.
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