Chairman, Pakistan Apparel Forum (PAF), Jawed Bilwani has urged Prime Minister Syed Yousuf Raza Gilani and Federal Finance Minister, Dr Abdul Hafeez Sheikh to issue urgent instructions to the Federal Board of Revenue (FBR) and RTO to release on top priority, all the held up Sales Tax Refund Claims of textile exporters.
In a letter he invited their attention to the billion of rupees of the value added textile exporters' held up with the RTO on account of pending Sales Tax Refund Claims, as a result of which the exporters are facing the severest ever liquidity crunch in these most difficult times, with rising cost of doing business here in Pakistan.
The utter apathy of the RTO in holding back the sales tax refund claims of the genuine exporters who are struggling hard against heavy odds, in the international market in the face of stiff competition from neighbouring and other competing countries and battling to earn the sorely needed foreign exchange for the nation looks like the RTO wants to crucify and crush the value added textile export sector. It is indeed an irony that one of our member, Pakistan Hosiery Manufacturers & Exporters Association has voluntarily donated complete computer system with printer to the Regional Tax Office to enable it to speed up the payment process of Refund Claims but alas, there has been no outcome at all and the exporters are being punished instead.
He said unfortunately, we have observed that the worsening situation of the Sales Tax Department has become even worst after shifting to the Regional Tax Office and the exporters feel as if they have entered a one way street with no point of return. Day after day the exporters' liquidity is being blocked at the RTO causing immense amount of problems in the cash flow, making it impossible to exist, run their factories and production and meet their vital export commitments. The exporters borrow money from bank at exorbitant rate of interest, while their liquidity is held up in RTO for years together without accruing any interest. To strike the last nail in the coffin, the government wants to discontinue zero rated facility for export, which will really crucify the Value Added Textile Exporters. It appears that the government instead of coming to the aid of this most important foreign exchange earner, employment generator and partner of the government in valuable contribution for relief work, in these crucial times of economic breakdown of our country, which needs foreign exchange badly, is out to take vengeance and is imposing punishment to the Value Added Textile Export Sector.
Further, it is most unfortunate that the government is unable to provide us proper infrastructure; power including electricity and gas; reasonable rates of export refinance and to crown this all, our genuine Sales Tax Refund Claims have been inordinately held up for long period of time and such circumstances are compelling the exporters to go abroad where conditions are conducive. As large number of export oriented industries closing down in Pakistan resulting in imminent mass unemployment leading to further deteriorating law and order situation and chaos. He urged them to issue urgent instructions to the FBR and RTO to release on top priority, all the held up sales tax refund claims to the value added textile exporters with the aim to relieve them and enable them to run their factories and production, which has come to standstill and endeavour to get valuable foreign exchange.