FCCI demands payment of refund claims

Says CPEC is a ‘double-edged sword’ which could harm local business

FAISALABAD: Immediate payment of refund claims and continuity in government policy are necessary to enhance production of the textile industry up to 80%, said Faisalabad Chamber of Commerce and Industry (FCCI) President Muhammad Saeed Sheikh.

Addressing participants of the 23rd Mid Career Management Course of the National Institute of Management Peshawar (NIM Peshawar), he said that according to conservative estimates, the population of Faisalabad had crossed the barrier of 10 million. Faisalabad has also been ranked the second revenue generator after Karachi.

Responding to a question, the FCCI president said despite repeated commitments the government had failed to enhance the scope of tax net, as a result more burden was being shifted to the existing taxpayers. He said a few years ago the total number of tax return filers was 3.3 million that has now fallen to 1.1 million.

Despite  uninterrupted power supply to the industrial sector and improvement in economic indicators, most of the industries were working at only 50% of their installed capacity, said Sheikh.

He said no refund claim of sales tax and income tax had been paid after August 7, 2016. “Millions of rupees of exporters are stuck with the government, forcing them to get fresh loans at high mark-up from banks in order to meet their daily financing requirements.”

Sheikh said the China-Pakistan Economic Corridor was a double-edged sword and it could harm local businesses if they failed to exploit its potential.

Published in The Express Tribune, April 27^th, 2017.

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