The Lahore Chamber of Commerce and Industry has urged the Federal Board of Revenue (FBR) chairman for early refunding of sales tax and income tax claims as businessmen are facing serious financial problems. LCCI Vice President Syed Mahmood Ghaznavi in a statement on Saturday said that delay in sales tax and income tax refunds is hitting businesses hard and affecting their cash flows very hardly.
He said that the delay in release of huge funds that run into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units. He said that delay in refunds has also increased the cost of doing business as businessmen are paying cost of their borrowing from banks. He said the authorities concerned should take a realistic view of the matter and allow the refunds of sales tax and income tax to exporters and Manufacturers at the earliest, who were facing severe hardships. He said that the process to get refunds is so lengthy that sometimes it takes months for a manufacturer or an exporter to get his own money refunded.
Ghaznavi said businessmen are bearing huge financial cost on their own stuck-up money; therefore, the FBR chairman should look into the matter and ensure early release of sales tax and income tax refunds. He said that the private sector is ready to supplement all government efforts aimed at to revive economic activities in the country if they are provided breathing space but in the presence of such issues, it would be very difficult for the private sector to play its due role for better economy.