FAISALABAD - The Chairman FBR said that FBR has disbursed Rs. 3.8 billion on account of sales tax refund during July to April this financial year while Rs 1.8 billion was disbursed during same period of previous year. He assured the exporters to accelerate the refund system and forwarded necessary directions for speedy processing of refund claims.
He was talking to a delegation of Pakistan Textile Exporters Association which called on him under the leadership of PTEA Chairman Sheikh Ilyas Mahmood here on Sunday. Former Chairmen PTEA Rana Arif Touseef, Mian Ahmad Kamal, Azhar Majeed Sheikh, Asghar Ali and other prominent textile exporters were present in the meeting.
Apprising the FBR Chairman of the problems of textile exporters, Sheikh Ilyas Mahmood said that tax department is issuing recovery notices to exporters demanding tax recovery on account of refunds received against the supplies of black listed suppliers. He explained that at the time of supplies registered persons were not included in the list of suspected units and were active during the relevant tax period and goods purchased from these suppliers were duly exported and refund was sanctioned after thorough scrutiny of the refund claim. He further informed that most ticklish issue is severe liquidity crunch as 30 to 35 percent working capital of textile exporters has been stuck up in sales tax, customs rebate and federal excise duty refund regimes if that amounts are released, exporters can deploy that capital towards expanding their businesses, which in turn will help Pakistan’s export earnings grow.