PLGMEA expresses disappointment over refund issuance

0
17

KARACHI: Pakistan Leather Garment Manufacturers and Exporters Association (PLGMEA) on Thursday expressed disappointment on time-frame given by the finance minister for issuance of refunds.
“The time frame announced in the budget 2018/2019 for refund of pending claims is not only very disappointing but also not acceptable,” PLGMEA chairman Hassan Ali Bhatti said in a statement.
He said that the value added leather exporters are already greatly burdened and crushed due to rising tariff of electricity, gas and other essential raw materials leading to high costs of doing business in Pakistan as compared to our competing countries.
“Huge amount of the harassed exporters’ liquidity is blocked in sales tax refund claims, Customs rebate claims and in DLTL Claims,” he added.
The government for the last five to six months has stopped paying refunds amounting to billions of rupee belonging to export sector. Holding back refunds for a further period of one year will cripple our export commitments and ultimately exports will decline.
He demanded that the government should release the pending claim amount immediately to the exporters.
He said that the budget was meaningless for the business community as no measures have been taken for industrial growth. There are no incentives to stimulate and boost growth.
He appreciated the withdrawal of duty on wet blue. Hassan said ‘No Payment No Refund Regime’ was the good decision of the government; this practice should be continued in future.
He said that zero rating is supportive to eliminate tax frauds once and for all as the system of collecting sales tax and then refunding is not only an exercise in futility but involves large number of sales tax personnel and precious time of FBR which can otherwise be utilized to bring more and more persons in the tax net to increase revenue for the FBR.