VAT exporters: government asked to clear billions of rupees refund claims

The value-added textile sector has demanded of the government to clear exporters' billions of rupees, which have remained stuck up with the FBR under various heads.
The Chairman of Towel Manufacturers Association of Pakistan (TMA), Usman Ali, and Vice Chairman Rangoonwala, Feroze Alam Lari and Muzammil Husain said in a statement that over Rs 100 billion of value-added sector have remained stuck up against sales tax and R&D claims while billions of rupees are unpaid by the government against refunds of DLTL due to which exporters are facing massive financial crunch.
"No budget or trade policy can be effective or economy comes out of red unless and until government clears these outstanding dues", Usman declared. He said that according to strategic Trade Policy Frame Work 2009-2012 and subsequent announcement of Textile Policy 2009-2014, following incentives were granted to textile exporters but the same have not yet been implemented in real spirit. Because of that, exporters are facing following problems and issues with the various governmental departments which need immediate redressal.
Under R&D (research and development) claims for the period 2007-2008, only 40 percent claims were settled to the exporters while balance payments of 60 percent are still lying pending at State Bank of Pakistan. Under the head of D.L.T.L (drawbacks of local taxes and levies), exporters have been paid only 14.68 percent of their submitted claims in SBP in the last financial period while balance is still lying in pending with SBP.
DLTL Notification is about to expire on 30th June, 2011 which is a part of Textile Policy and since Textile Policy is valid till 2014, DLTL Notification needs to be extended up to June 30, 2014, the TMA Chairman demanded.
He said that under the scheme of one percent additional increase on 15 percent increase in exports over preceding years exports in dollar terms the procedure of availing above incentives have not yet been announcement by the Ministry of Textile Industry in spite of several representations; because of that exporters could not avail above incentives while 2.5 percent rebate on interest on export refinance.-PR