Govt asked to resolve issues of export-oriented industry
LAHORE – The Lahore Chamber of Commerce & Industry has demanded of the government to resolve the issues of export-oriented industry at the earliest as hurdles like delay in refund claims, stuck-up duty drawback and non-implementation of Prime Minister’s incentive package are hampering the growth of exports.
The demand was raised by LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil while talking to the delegation of exporters, led by the LCCI Executive Committee Member Adeeb Iqbal Sheikh, here at the Lahore Chamber of Commerce & Industry.
Adeeb Iqbal Sheikh informed the LCCI office-bearers said that FBR field officers were instructed by the high-ups to process and sanction expeditiously the sales tax refund claims of five major export sectors for the period from July, 2016 to December, 2016, but this date was later extended to October 31, 2016. He claimed that FBR repeatedly extended the payment date from March 31, 2017 to June 30, 2017, then to September 30, 2017 and finally to October 31, 2017.
The LCCI office-bearers said that exports cannot grow in the presence of such problems therefore Federal Board of Revenue should resolve these issues at the earliest. They said that the delay in release of huge funds that runs into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units. They said the authorities concerned should take realistic view of the matter and allow the refunds of sales tax and income tax to exporters and manufacturers at the earliest, who were facing severe hardships.
The LCCI office-bearers said that the process to get refunds is so lengthy and cumbersome that sometimes takes months for a manufacturer or an exporter to get his own money back. They said that the businessmen were bearing huge financial cost on their own hard earned stuck-up money, therefore, the FBR Chairman should look into the matter and ensure early release of Sales Tax and Income Tax refunds.
They said that the businessmen have now started feeling the pinch as the businesses were already in deep troubles and experiencing toughest times because of multiple internal and external challenges including an acute shortage of electricity and gas. And now the delay in release of their own money was adding to their miseries.
They said that it was a matter of concern that despite clear instructions of Federal Finance Minister Ishaq Dar to release Sales Tax and Income Tax refunds at the earliest, FBR machinery was using delaying tactics and creating hurdles for the business doing people.
He urged the Prime Minister to take notice of the situation and issue directions to the FBR authorities to expedite stuck-up Sales Tax and Income Tax refund claims.