Chairman, Site Association of Industry (SAI), Abdul Wahab Lakhani has appreciated the decision of the government to postpone the implementation of RGST for a month. He still cautioned that hasty implementations, even after one month was bound to create chaos and confusion not only in general public but also among tax collecting authorities.
He further said that the decision of the government to withdraw zero rating facility from the value-added textile sector was not a right decision as it will have devastating effects on the textile industry and the collapsing industry will soon perish, under the pressure of cash flow crunch.
Referring to refund of GST Abdul Wahab Lakhani expressed dissatisfaction on delay in refunding the huge blocked amount of business community which according to FBR sources is over Rs 37 billion, involved in 72 cases and said that despite repeated promises made by the high ups in FBR in the recent past the blocked amount has not been released so far. Major export sectors have apprehended liquidity crunch in case the blocked refund claims are not released immediately, he added.
He said that the textile sector which is the only sector earning 60 percent foreign exchange, sharing the national budget to a great extent and playing an important role in balancing the economy of the country will lose its relish and will think of winding up the business.
He stressed that the claim of the government for refund of GST to the exporters would prove only to be a mirage for the exporters as in the past, when the GST was introduced, many promises were made for timely refund of the GST but never implemented. The unscrupulous elements used to misuse the refund procedures and obtain huge refunds with the connivance of sales tax officers thus depriving not only genuine exporters but also cheating the exchequer.
The solution to this multiple problem was found only in the introduction zero rated regime for five export-oriented commodities, including textiles. Now if the zero-rated facility is withdrawn, it will again leave the manufacturers-cum-exporters at the mercy of unscrupulous usurpers and dishonest officials.-PR