Sales tax: Exports likely to pick up after release of tax refunds
PAF asks govt to clear refund claims of higher value as well
CREATIVE COMMONS
KARACHI:
The Pakistan Apparel Forum (PAF) has welcomed the release of all pending sales tax refund claims up to the value of Rs1 million whose Refund Payment Orders (RPOs) had been sanctioned till April 30, 2017.
PAF Chairman Muhammad Jawed Bilwani voiced hope that following the release of stuck sales tax refund claims, the country's exports were likely to pick up as the move would improve the liquidity of exporters and allow them to make prompt shipments.
Instead of waiting for August 14 to clear the remaining tax refund claims of more than Rs1 million each, Bilwani said the government should make the payment at the earliest so that businessmen could plan their investments in balancing, modernisation and replacement (BMR) programme. "This will have a good impression on foreign buyers."
He, however, decried that out of the Rs180-billion prime minister's export package, only Rs3 billion had been released so far under the Drawback of Duties and Taxes scheme.
Drawback claims worth Rs5.9 billion have been processed and funds will be released by the State Bank of Pakistan (SBP). However, the finance ministry has yet to transfer the said funds to the SBP for onward release to the exporters.
He requested Finance Minister Ishaq Dar to release funds for the payment of duty and tax drawback claims.
Bilwani expressed the hope that sales tax refunds as well as customs rebate and duty drawback claims would be paid in time and there would be no delay in future.
Published in The Express Tribune, July 22nd, 2017.
The Pakistan Apparel Forum (PAF) has welcomed the release of all pending sales tax refund claims up to the value of Rs1 million whose Refund Payment Orders (RPOs) had been sanctioned till April 30, 2017.
PAF Chairman Muhammad Jawed Bilwani voiced hope that following the release of stuck sales tax refund claims, the country's exports were likely to pick up as the move would improve the liquidity of exporters and allow them to make prompt shipments.
Instead of waiting for August 14 to clear the remaining tax refund claims of more than Rs1 million each, Bilwani said the government should make the payment at the earliest so that businessmen could plan their investments in balancing, modernisation and replacement (BMR) programme. "This will have a good impression on foreign buyers."
He, however, decried that out of the Rs180-billion prime minister's export package, only Rs3 billion had been released so far under the Drawback of Duties and Taxes scheme.
Drawback claims worth Rs5.9 billion have been processed and funds will be released by the State Bank of Pakistan (SBP). However, the finance ministry has yet to transfer the said funds to the SBP for onward release to the exporters.
He requested Finance Minister Ishaq Dar to release funds for the payment of duty and tax drawback claims.
Bilwani expressed the hope that sales tax refunds as well as customs rebate and duty drawback claims would be paid in time and there would be no delay in future.
Published in The Express Tribune, July 22nd, 2017.