KARACHI: Delay in release of sales tax refunds have left the value-added textile exporters “annoyed”, which they said, has also caused them financial hardships and liquidity crunch.
The recent economic uncertainty and political unrest has negatively affected almost all segments of the economy mainly the exports, Javed Bilwani, Chairman, Pakistan Apparel Forum, said on Wednesday.
“The value-added textile exporters are highly annoyed over excessive delays caused in release of their Sales Tax refunds worth billions of rupees against approved RPOs, which has caused them financial hardships and liquidity crunch,” he added.
He held government “responsible” for textile exports downfall amid excessive refunds delays, besides the unbridled high cost of utilities and production with an unviable business environment.
Previously, the value-added textile exports witnessed a “great” growth of 27.60 percent during July-August 2021-22, which witnessed a 23.85 percent decline, reaching the level of 3.75 percent in July-August 2022-23, he called it “alarming”.
“High-ups at Islamabad have closed eyes towards Sales Tax Rules, irrespective of issuing of Refunds Payment Orders (RPO) to Exporters unwarranted and excessive delays in refunds worth billions of rupees is highly unjustified,” Bilwani said.
The government had assured the textile exporters that sales tax refunds will be processed through the FBR’s FASTER System within 72 hours, but the delay prolonged up to three weeks, he said.
“Thus, exporters have expressed great dismay over the excessive delays and have demanded immediate payments against their approved refund claims,” Bilwani said.
The stuck sales tax refunds have caused severe financial hardships for exporters, leaving them unable to procure inputs for manufacturing purposes, he said.
He demanded of the government to honour its commitment and ensure swift payments to exporters against their approved refunds immediately and also ensure to process and release all future sales tax refund claims within 72 hours after submission.
Copyright Business Recorder, 2022