LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Chairman Adil Butt has urged Finance Minister Ishaq Dar to issue instructions to the Federal Board of Revenue (FBR) for speedily releasing pending customs and sales tax rebate and refunds claims to save the export-oriented industries from complete ruin. He said made this demand while talking to reporters here the other day.
He urged the government to release the held up sales tax refund claims of the value-added textile industry, as huge amount of liquidity is blocked with the FBR, causing immense problems to the cash-starved exporters.
Adil Butt said that their major portion of working capital is stuck up with the FBR, as the textile exporters have not received their Drawback of Local Taxes and Levies (DLTL) either outstanding for the last many years.
Lauding the prime minister for announcing the long-awaited export package, he said that industry’s revival package would give boost to the country’s exports only if the issue of liquidity crunch is also resolved on emergency basis.
PHMA chairman said though the government issued sales tax Refund Payment Orders (RPOs) yet cheques were being delayed which was indeed most alarming and reflected poor financial management of the government.
The textile industry would remain unviable in case the government fails to return local taxes and levies on exports, he said.
Adil Butt urged the government to act decisively and rescue the value-added textile industry from financial crisis, as worst-ever cash flow crunch has brought the country’s largest industry to the verge of disaster. Although too late, but Prime Minister’s Rs180 million package will help the whole textile chain, which had become uncompetitive in the international market due to higher cost of production in Pakistan as compared to our competing countries,” he added.
