Textile sector: amnesty scheme deadline extended

02 Apr, 2013

Following an encouraging response from textile sector, which deposited over Rs 3 billion to clear their past sales tax liabilities, the Federal Board of Revenue (FBR) has extended the amnesty scheme up to April 15, 2013. Sources told Business Recorder here on Monday that the scheme under SRO. 179(I)/2013 has been further extended for a period of 15 days for the textile sector.
So far, the textile units including top five textile mills have availed the scheme and deposited over Rs 3 billion to the national kitty. Leading textile mills have availed the scheme and deposited huge amount to the exchequer. The scheme has been further extended on witnessing overwhelming positive response. Moreover, units were facing problems in filing special sales tax returns, electronically under SRO. 179(I)/2013. Some units were unable to arrange funds in the last two days ie Saturday and Sunday (March 30-31) for availing the scheme. The electronic system of PRAL was slow and certain units were unable to file special returns.
The FBR has received a request from All Pakistan Textile Mills Association (Aptma) to further extend the scheme. The FBR has accepted the request and further extended the scheme. The Aptma has played a positive role in convincing leading textile giants to deposit the past sales tax liabilities under 179(I)/2013. Senior management of Aptma including Gohar Ejaz, Group Leader played a vital role in assisting FBR for recovery of the defaulted sales tax from textile sector. Sources said that the textile sector has positively responded to the amnesty scheme and deposited over Rs 3 billion till March 31. The scheme has attracted a number of textile units which has overburden the normal working of the banks on Saturday. Most of the textile units are interested to clear their past sales tax liabilities under SRO 283(1)/2011, SRO 1058(1)/2011, SRO.1125(1)/2011 on payment of 2 percent sales tax without any default surcharge or penalty.
Sources said that the FBR has issued instructions to the Regional Tax Offices (RTOs) to constitute special teams for criminal proceedings against the defaulted units after April 15, 2013. The FBR has decided to charge standard rate of 16 percent sales tax during recovery drive against the defaulted units. The Board would register FIRs against the textile units which would not avail the scheme from April 16, 2013 and initiate criminal proceedings against them. The FBR will also impose standard rate of 16 percent sales tax during recovery action against the units which failed to avail the amnesty scheme.

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