Pakistan Textile Exporters Association (PTEA) Chairman, Mian Zahid Aslam has demanded that refund of sales tax on packing material, dyes and inputs of made-ups, should be made at the time of duty drawback payment to save the time, energy and expenses of exporters and departments.
In a communication addressed to Chairman, Central Board of Revenue, M Abdullah Yusuf, here on Wednesday, he said that exporters were receiving sales tax refund on packing material, dyes and inputs of made-ups.
However, the amount of refund on these items was very meager, hardly one percent of the export value, hence for obtaining refund the exporters have to go through a complicated, prolonged and time consuming regimen, he said.
A large number of documents have to be prepared and got verified from different departments, he stated. This process consumes a lot of time, energy and expenses of exporters. Sometimes, the cost of preparing documentation exceeds the amount of sales tax refund to be received. Furthermore, he said the time and energy of the department staff was also wasted in this unfruitful exercise.