Chairman, Pakistan Bedwear Exports Association (PBEA), Shabir Ahmed has urged the chairman of Federal Board of Revenue (FBR) to hold meeting with the association to discuss issue of draft refunds rules. In a letter to the FBR chairman, he noted that the association received draft rules regarding to refund of 17 percent GST for the five exports oriented sectors and added there are three types of exports including 100 percent exports/ manufacturers, exports/ manufacturers and also doing local sale and 100 percent commercial exports.
He express concern over the proposed refund mechanism which will create several difficulties in cash flow and working capital would be blocked of all three categories of exports specially those who are 100 percent exports/ manufacturers and those who do not have the weaving/ processing units or local sale.
He said that those who are doing 100 percent exports/ manufacturing cannot fully adjust their input/ output tax. While for those exports who are doing exports and local sales and have fully integrated units can easily adjust their refunds and their sales tax would be less blocked.