PRGMEA for early disposal of tax refund claims

LAHORE: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Monday urged the federal government to dispose tax refund cases at the earliest.

PRGMEA Senior Vice Chairman Sheikh Luqman Amin, in a statement here, alleged that the finance ministry had neither released full funds under the earlier PM's Package for Exporters nor under the revised one due to which 50 per cent exporters had not received refunds.

He claimed that the State Bank of Pakistan had not consulted trade associations while issuing the new Notification No 1(42-A) TID/17-TR-II regarding refund claims procedure, which could never be implemented.

The Ministry of Textile had assured the exporters of simple procedure and paperless working, but in the new notification, the central bank had involved more paper work and lengthy process for disbursement of duty drawback claims under the PM Package, he added.

He said the exporters had been asked to directly submit their claims to the banks, which had no technical staff to evaluate the claims. The commercial banks / authorised dealers were violating the SBP's instructions of forwarding refund cases within 14 days of receiving from the exporters due to unavailability of professional staff, he claimed.

Sheikh Luqman claimed that non-refund of tax claims had become the main factor for decrease in the country's exports as the industry was unable to tap its full potential in accordance with the capacity.

He said the government initiative, if implemented timely, would surely provide relief to the exporters who were presently facing severe liquidity crunch.

He also called for restoring the role of trade associations in the DDT Order 2017-18 that would ensure smooth implementation of the PM package for exporters.