"It seems that the FBR has lot of time to waste which is evident from the notices for requisition of the record under Section 25 of the Sales Tax Act 1990 demanding such records from our member exporters despite the fact that audits of our member exporters have been completed up to the period 30-6-2011 by the Audit Officer Inland Revenue - Regional Tax Office, Karachi.
The audit certificates are issued under Section 25 of the Sales Tax 1990 in the light of SRO No 1125/(I)/2011 dated 31-12-2011 for the year ending 30-6-2011 regarding facility of zero rating on utilities availed by registered person. The next accounting period completes on 30-6-2012 (yet to come) but the FBR is directing for audit/scrutiny of the records of our member exporters now during the current month of May, 2012 before the accounting period which will complete on 30-6-2012," lamented Jawed Bilwani, Chief Co-ordinator, Pakistan Hosiery Manufacturers & Exporters Association.
Bilwani said already there was 25% decline in exports and as it is the exporters are burdened and facing great difficulties due to 24 federal and provincial agencies bothering them, continuous load shedding, severest ever liquidity crunch as a result of held up sales tax refund claims, custom rebate claims and DLTL claims with several other adverse factors and such unreasonable and unjustified demand by RTO is causing great resentment and problems for the already harassed exporters.
In the current global scenario and stiff international competition exporters are struggling hard day and night despite heavy odds battling to meet their export commitments with stringent demands from their foreign buyers but unfortunately it seems that the government does not care at all how important it is for the exporters to earn the much needed foreign exchange for the country.
He said the refund amount involved was up to 1.5% of the total export value which was of packing materials and audit exercise was for this paltry amount. Our member exporters, he said, were zero rated for the utilities and filed their returns every month. He said it is ironical that such small exporters whose refund amount was between Rs 5000 to Rs 10000 per month and who did not bother to get their refunds were also being sent such audit notices. When such small exporters do not take any refund what is the point for their audit? In view of the above, he strongly felt that the RTO should not make such extraordinary and unjust demands and called for the audit at the end of accounting period ie 30-6-2012.-PR