Lahore (PR) Pakistan Hosiery Manufactures & Exporters Association has said that the withdrawal of zero-rating facility has created a fear among the value-added textile exporters that their refunds would start getting stuck from the current month, as the government has not put up an efficient system of refund payments in place. PHMA Chairman Adil But said if facility of zero rating is done away with, as revenue is also needed for the country, then FBR must develop a speedy and efficient mechanism for payment of refunds to mitigate the resulting liquidity problems otherwise industry will be forced to shut their operations.
He maintained that FBR cannot manage speedy payment of refunds, which would squeeze working capital and make it difficult for businesses to even pay their salaries and unable to sell their products aggressively in the international market. Moreover, he said that the high input costs, including energy, are making Pakistani products uncompetitive in the international market.
He suggested that the decision of the withdrawal of Zero Rating facility should be put in abeyance till a proper and efficient system of refunds is made, tested and implemented.