Faiq Javed, Chairman Pakistan Textile Exporters Association (PTEA) has hailed the special procedure for delivery of goods and services without payment of sales tax being enforced by central board of revenue (CBR). Briefing the executive members here on Thursday after meeting with the Chairman CBR Abdullah Yousuf, he said the chairman CBR has responded positively to the proposals of the exporters to remove irritants in the proposed procedure and rules to make the scheme practicable, workable and facilitative for exporters.
Ever since the introduction of sales tax refund regime, the textile exporters had been persistently demanding a hassle free sales tax refund regime where the exporters have not to pay sales tax first and then get the refund after export, he said.
Under the prevalent system, huge amount of exporters were stuck up in refund regime and they were not able to expand their turnover and could not execute new export orders due to liquidity crunch. Hence the exports of the country were hindered, he added.
Responding to the demands of the textile exporters, the CBR has devised various improvements in the refund rules but practical problems persisted, he said. Furthermore, lot of time of exporters was consumed in going through the audit and extra documentation requirements, he stated.
Resultantly the exporters could not devote for promotion of exports and productivity increase. It was in this context that PTEA was struggling for easement of refund regime. Realising the genuineness of the exporters' problem, the CBR Chairman Abdullah Yousuf has framed special procedure for delivery of goods and services without payment of sales tax. There were minor irritants in these proposed rules, which have been thrash out, and exporters views have been accommodated.
Faiq Javed appreciated the positive approach and cooperative attitude of CBR Chairman Abdullah Yousuf and hoped that simplified procedure would be enforced very soon.