By Business Reporter
KARACHI: Sales tax refunds of over Rs 125 billion belonging to the textile sector are pending with the government. Th timely clearance of sales tax refund through promissory notes by the government is must to boost the business of the textile and allied industries.
“Federal Board of Revenue (FBR) should ensure early release of Refund Payment Orders (RPOs) against pending sales tax refunds. PIAF has welcomed announcement of issuance of promissory notes to clear huge amount of long outstanding sales tax refund. Currently, billions of rupees of exporters were stuck up on account of sales tax, customs rebate and income tax refund claims and duty drawback of taxes (DLTL) and delay in payment of these pending refunds causing losses to the largest foreign exchange earning sector through exports,” Pakistan Industrial and Traders Associations Front (PIAF) chairman Mian Nauman Kabir said yesterday.
Fax refunds of the exporters hav been stuck for a long time for more than a year in most cases and now the government has announced issuance of promissory notes to liquidate those refunds which is a right step in the right direction.
The businessmen are bearing huge financial costs on their own hard earned stuck-up money; therefore, the FBR chairman needs to look into the matter and ensure early release of sales tax and income tax refunds as promised by the government through promissory notes.
Kabir appreciated FBR’s move of issuing instructions to all chief commissioners of LTUs and RTOs to urgently issue refund payment orders of admissible sales tax refund claims before issuance of the first batch or promissory notes (Refund Bonds) by February 14, 2019. The association’s members have now started feeling the pinch as they were already facing troubles and experiencing toughest times because of multiple internal and external challenges, Kabir concluded.