September 28, 2020

The textile businesspersons in the country have requested the government to restore the zero-rated facility if the government cannot return their billions of rupees worth of sales tax refunds. The textile businesspersons said that they were facing extremely hard operating situations due to the non-payment of these taxes.

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) chairperson Haji Salamat Ali said that the government had promised the exporters of repaying the taxes within 72 hours of filing the tax return claims in the FBR’s online FASTER system, which has not turned out to be the case.

FBR has said that the submission of the Annexure-H form through the online FASTER system would be treated as the submission of the refund claim and the exporters are facing difficulties in filling of the Annexure-H forms.

Businesspersons said that if the government cannot return taxes through the online system then they can restore the Zero Rating-No Payment-No Refund regime for exports oriented sectors.

Faisalabad Chamber of Commerce and Industry, VP Zafar Iqbal Sarwar said that the government has not paid regular claims worth Rs80 billion, which are pending for the time period of July-October 2019.

Chairman All Pakistan Textile Processing Mills Association (APTMA) Muhammad Pervez Lala said that the government should reduce the sales tax from 17% to 5% as this step would prevent a total collapse of the textile industry. He said that, “ The textile industry has the status of Pakistan’s top national industry which provides products to millions of domestic consumers. The sector also provides jobs to millions of laborers and creates billions of dollars worth of revenue to the country. Due to the abolition of the zero tax regime and imposition of GST, the industry is facing a serious crisis. Hence, it is necessary to reduce the rate of sales tax urgently at adequate levels.”

Muhammad Asad

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