Exporters demand release of duty refund

They need money to meet orders for New Year, Christmas.

FAISALABAD: Exporters have pressed the government to immediately release billions of rupees stuck in shape of duty and tax refund and research and development support, which will help them immensely in making shipments for the New Year and Christmas.

Talking to the media here on Tuesday, Faisalabad Chamber of Commerce and Industry (FCCI) President Zahid Aslam said sky-rocketing prices of inputs, electricity and gas shortage, inconsistent textile policies of the government and worsening law and order situation had made conditions worse for businesses.

If refund claims were not cleared swiftly, the exporters would face a liquidity crunch, disturbing their schedule of shipments and the export orders.

“Our exporters, because of gas and electricity shortage, are forced to turn to alternative but costly energy options, which add up to production cost, resultantly lowering competitiveness of our products in foreign markets,” he said.

“Every-day rise in prices of petroleum products has made manufacturing cost uncertain, thus affecting business viability.”

Sounding optimistic, he said despite all these, the textile exporters were still capable of bridging the deficit in exports as well as meeting the target of $25 billion if the liquidity crunch was addressed and refund claims were cleared.

He asked the government to issue orders to the Federal Board of Revenue (FBR) for early release of refund amount and suggested that payments to the exporters should be made on a sustainable basis under a viable system.

Published in The Express Tribune, October 3^rd, 2012.