Adviser to Prime Minister on Finance Dr. Abdul Hafeez Shaikh has accepted the demand of textile exporters, allowing them the payment of sales tax refunds for the month of August and July through an old expeditious refund system (ERS) system.
Talking to the delegation of the textile exporters in Islamabad, he said that instead of filing claim Form-H for sales tax refunds, the exporters would be facilitated to claim their refunds through the old ERS system. The participants agreed to improve form-H or bring about a parallel refund system within two weeks to ensure timely payment of sales tax refunds.
Adviser on Textile and Commerce Industry Abdul Razak Dawood, Federal Board of Revenue Chairman Shabbar Zaidi, head of Textile Task Force Ahsan Bashir, Finance Secretary Naveed Kamran Baloch and Finance Special Secretary Umar Hameed Khan was also present in the meeting.
On the demand of the delegation, Abdul Hafeez Shaikh directed FBR to immediately pay exporters two billion rupees payable sales tax refunds for which the Refund Payment Orders (RPOs) have already been issued.
He said that the government believed in promoting exports instead of blocking sales tax refunds. He said that all possible measures would be taken to facilitate exporters and resolve their grievances regarding sales tax refunds.
Due to deadlock between the Federal Bureau of Revenue and the All Pakistan Traders Association (APTA) over government’s tax policies and against the condition of computerized national identity card (CNIC), traders across small and big cities are observing a shutter-down strike.
On Sunday, APTA President Ajmal Baloch had announced that the strict conditions of the International Monetary Fund have badly affected the trading activities, against which the business community will protest strongly. Business centers and markets remained shut due to the strike.
Karachi Electronics Dealers Association President Rizwan Irfan said the trader’s issues were not being resolved for the last six months due to poor economic policies of the government. These include duties and taxes on traders of old mobile phones, sales tax registration for six months, a prerequisite of the CNIC for purchase of over Rs 50,000.