Green channel to be introduced for early sales tax refund payments

The Central Board of Revenue (CBR) is to introduce a Green Channel for expeditious payment of sales tax refund to the exporters from next month.
The new system will replace the existing practice of payment under gold and silver categories.
This was revealed by the Collector, Enforcement, Khwaja Tanveer Ahmed, in a meeting with the Pakistan Readymade Garment Manufacturers and Exporters Association (Prgmea) on Monday.
The new system would be based on track record of the exporters, making them eligible for payment in green, yellow and red channels.
He said the collectorate had prepared a profile of the exporters for the new system.
The claims, falling under the green channel, would be paid immediately, while those coming under yellow and red channels would be subject to certain scrutiny, he said.
Giving details of the meeting, the Chairman, Prgmea Sales Tax sub-Committee, Abdul Wahid Bandukda, said that the new refund system would be launched on trail basis in Lahore in March and would be operative for the exporters in Karachi after the budget.
The Collector informed the Prgmea that the pendency of sales tax refund cases had been reduced to one month from earlier six months and the claims, filed in January, were being paid to the manufacturers-cum-exporters in the East zone.
He said the pendency of cases had been reduced to two months for the exporters in the West Zone.
Bandukda appreciated the efforts for prompt payment of refunds to the exporters, which had greatly helped in coping with the recent cotton crisis.
The strong liquidity would also help them in preparing for the forthcoming World Trade Organisation (WTO) regime, he added.
He informed the Collector that the service centre, set up at Prgmea's premises to provide information on the status of Prgmea members, had become operative.
He requested the Collector to invite the concerned trade body to the meeting of the committee, set up to review the progress of the payment of refund and monitor the performance of the exporters against their eligibility for the privileged gold and silver class. The Collector acceded to the request.
Bandukda also appreciated the fact that on special directive of the Collector, the sales tax refund staff was providing details of deferred payment to the exporters along with the refund cheque.
The meeting was also attended by Additional Collector Nasir Butt.