LAHORE - Pakistan Industrial and Traders Associations Front (PIAF) former chairman Irfan Iqbal Shiekh has urged the Federal Board of Revenue (FBR) to early release Refund Payment Orders (RPOs) against pending sales tax refunds.

He said that PIAF has welcomed announcement of issuance of promissory notes to clear huge amount of long outstanding sales tax refund.

He said that currently, billions of rupees of exporters are stuck up on account of sales tax, customs rebate and income tax refund claims and duty drawback of taxes order under Prime Minister’s export package and duty local taxes and levies schemes with the government and delay in payment of these pending refunds causing losses to the largest foreign exchange earning sector through exports.

Irfan Iqbal Sheikh said that tax refunds of the exporters have been stuck for a long time for more than a year in most cases and now the government has announced issuance of promissory notes to liquidate these refunds which is a right step in the right direction.

PIAF former chairman informed that sales tax refunds of over Rs 125 billion belonging to the textile sector are pending with the government and the timely clearance of sales tax refund through promissory notes by the government would boost the business of the textile and allied industries.

PIAF chairman Mian Nauman Kabir also appreciated FBR’s move for issuing instructions to all chief commissioners of LTUs and RTOs to urgently issue refund payment orders of admissible sales tax refund claims before issuance of the first batch or promissory notes (Refund Bonds) by February 14, 2019.