Revival of 'No Tax No Refund' regime demanded

Former president of KCCI and patron of SITE Association of Industry Zubair Motiwala has drawn the attention of the federal government towards the difficulties being faced due to inability of fully automated sales tax refund system (FASTER) by five zero-rated export sectors, namely, the value added textile, sports goods, surgical goods, leather and carpet and demanded "No Tax No Refund" regime through revival of SRO-1125.

Zubair Motiwala said that the Federal Board of Revenue declared these five export sectors as zero-rated sectors under SRO-1125 on which sales tax was charged at zero-rate but unfortunately this facility was withdrawn in the last budget.

Re-imposition of sales tax had compelled the foreign buyers to shift order to other regional competing countries, which would drastically hurt our economy and the tax had put an extra burden on the manufacturing of these sectors.

Motiwala further said that it was time to declare this in the upcoming budget and fulfill the long outstanding demand of value-added export sectors to restore "No Tax No Refund" regime.