The Pakistan Industrial and Traders Associations Front (PIAF) has urged the Federal Board of Revenue (FBR) to ensure early and timely payment of stuck-up refund claims of the export-oriented sectors facing hardships. The PIAF chairman Irfan Iqbal Sheikh in a statement on Friday said that the businessmen were bearing huge financial costs on their own hard earned stuck-up money; therefore, the FBR chairman should look into the matter and ensure early release of sales tax and income tax refunds.
The association's members have now started feeling the pinch as they were already facing troubles and experiencing toughest times because of multiple internal and external challenges, he said.
He urged the Federal Finance Minister Ishaq Dar to take notice of the situation and issue directions to the FBR authorities to expedite stuck-up sales tax and income tax refund claims. He said the authorities concerned should take realistic view of the matter and allow the refunds of sales tax and Income Tax to exporters and manufacturers at the earliest, who were facing severe hardships. He said that the process to get refunds is so lengthy and cumbersome that sometimes it takes months for a manufacturer or an exporter to get his claims refunded.
He said the exporters are already facing financial crunch due to devaluation of Euro while delay in refund of sales tax and income tax claims is adding fuel to the fire.
He said that the delay in release of huge funds that runs into billions has triggered serious liquidity crunch for the exporters that might lead to closure of several industrial units.
The PIAF chief also urged the FBR to stop misuse of Section 38B of the Sales Tax Act 1990, which is creating atmosphere of harassment. He said that FBR should stop tax officials from creating an atmosphere of harassment. The FBR move would not only give a negative message to the local investors but would also discourage the much-needed foreign investment, he added.
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