Value-added textile sector: Bilwani for release of customs rebate, ST refunds

The value-added textile sector on Thursday clamoured for the non-release of huge amount of customs rebate and sales tax refunds that had pushed the exporters to financial crisis. The struggling exporters worried over the non-release of their customs rebate and sales tax refunds that came to huge amount scaling down the textile manufacturing. Chairman, Pakistan Apparel Forum, Muhammad Jawed Bilwani called the backlog of the refunds a 'dilemma', saying the textile manufacturing was at stake for liquidity shortfall.
"It is indeed a great irony and dilemma that huge amount of customs rebate claims of the exporters are indefinitely held up by the Federal Board of Revenue since last almost one and half year and sales tax refund claims since one year," he said. He said that the FBR was indifferent to the exporters' grim financial conditions and was unwilling to share Analysis Sheet of the deferred refund claims with textile sector just to let them know the reason behind the backlog.
"Exporters' sales tax refund claims are deferred and the FBR does not even care to provide the Analysis Sheet of such deferred claims to the exporters for them to know the reason of deferred claims," he said. He stated that Computerized Refund System for clearing refund claims was made out of order to delay payments as the same system worked properly to collect the tax. Bilwani said that the FBR mechanism was behind the backlog of refunds and feared the continuing delays may ruin the country's exports. He said that the FBR withdrew funds from the exporters' bank account without issuance of show cause.