President Sialkot Chamber of Commerce and Industry (SCCI) Majid Raza Bhutta on Thursday urged upon the government to take steps for clearance of outstanding sales tax refunds and duty drawback claims amounting to Rs 550 million. That burning issue had resulted in severe liquidity and cash flow problems for the exporters of Sialkot, he said.
Talking to Business Recorder, he said the businesses of Sialkot were belonged to SME category and they could not afford delay in payment of such claims and refunds as they had limited access to bank finance, hence cash flow problem creating serious impediments to compete in international market.
The SCCI President further stated that exports of the country were on downward trend not only by international scenario but also due to lack of support and seemingly dis-interest from the concerned quarters paying no heed to problems confronted by the business community.
Unfortunately rather by providing an enabling environment and removing the irritant arresting the growth, the export industry is being barraged by levies and taxes like Infrastructure Development Cess imposed by the Sindh and Punjab governments, Majid said. Despite, he said, those hurdles the business of Sialkot was making adequate efforts to boost export volume of the city.
The SCCI President further said no positive step had so far been taken for edging out the possibilities of further decline in exports of the country by the concerned quarters. The role of export sector was vital in enhancing foreign reserves but it was totally ignored by the concerned quarters in the country, he said. Unfriendly business polices, non-clearance of duty drawback claims, utilization of Export Development Fund for other purposed, lack of one window system for payment taxes and lack of skilled labour were the key factors in fall of export, he pointed out.
Under the prevailing circumstance, he said the government should take drastic steps and announce business-friendly polices and resolve the problems being faced by the exporters at the earliest possible to keep the production wheel in full motion. "If government released the funds it would certainly help the liquidity of the industry allowing it to be in far better financial position and would increase production, he said.
The SCCI President further stated that there was bright scope for business development as well as improvement of economy, adding that despite of certain problems the business community of Sialkot was making all possible efforts for the betterment of national economy with the object to make Pakistan economically strong and stable.