Chairman, Pakistan Tanners Association (PTA) Sheikh Afzal Hussain has urged Prime Minister Imran Khan and Minister of Commerce to resolve the issue of stuck-up sales tax refunds of exports and to restore the zero rated status for leather sector of Pakistan as early as possible, which is the dire need of the Industry for the promotion of trade/exports of the country.
He endorsed the demand for the restoration of zero rated status for all core five (05) export sectors of the country by reinstating SRO No. 1125, which is the vital need of export sectors of the country. Sheikh Afzal Hussain also shared with the media that huge amount in billion of rupees is now stuck with the government's kitty for the refund of sales tax to the exporters including leather sector of Pakistan; despite firm assurance given by Federal Board of Revenue (FBR) for the refund within 72 hours from the date of submission of claims thru FASTER programme.
He categorically highlighted the cumbersome procedure introduced in FASTER programme for the refund of sales tax with the submission of Annexure "H", which is well nigh impossible for our member exporters for submission with requisition as already explained to FBR during various meetings held in Islamabad.
It is apprehended strongly by the Chairman, PTA Sheikh Afzal Hussain with consensus of his central executive committee of PTA that if the refund of sales tax is not cleared urgently without further delay with rapid fire to the exporters of leather, resultantly the remaining 50% industry, which are working with severe financial crisis owing to non refund of sales tax from July'2019 till date may also be jeopardized for the closure, which would ultimately be brought to the further negative impact to the exports of leather sector of Pakistan.
He also shard the export figures for leather sector of Pakistan concluded for the financial year from July-2018 to June-2019, which is recorded at (-11%) declining trend, which could be declined further if the sales tax issue with other core issues of the industry would not be resolved to the desired extent by the government of Pakistan/FBR/ MOC.
Copyright Business Recorder, 2019
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