Towel Manufacturers' Association of Pakistan (TMA) has asked the Federal Bureau of Revenue to set up a separate refund mechanism for the export oriented sectors. In a letter to the FBR chairman, also made available for Business Recorder, the TMA pointed out its concerns over the proposed mechanism the government is going to place for refunds to the export sector.
"We have reviewed in detail the draft of the 17 percent GST refund rules for the five exports oriented sectors. As towel manufacturers being 100 percent export oriented industry of Pakistan, we firmly believe that the proposed refund mechanism will create severe cash flow crunch and increase the cost of doing business for the exporters," according to the letter.
It said that the TMA forecasts 'minimum' 25 percent fall in its export in the next three months once the refund mechanism takes place. "As 100 percent export industry, we request FBR to treat our refunds in a separate manner so the industry remains competitive and further grow its exports, it said, offering the FBR a consultation to help improve the mechanism in a bid to increase the industry's 'survival and growth' prospects.
"Keeping in view the above we request you to grant us an appointment as convenient to you so that we can explain personally pros and cons of the scheme," according to the letter.
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