KARACHI: The exporters have requested Dr. Abdul Hafeez Sheikh Adviser to Prime Minister on Finance and Revenue to intervene for revision of sales tax refund policy for export-oriented sectors and create a dedicated head (Escrow Account) for refund claims to be monitored by a committee comprising Federal Board of Revenue (FBR) officials, audit firms and textile associations.
In a communication to Dr. Abdul Hafeez Sheikh, Shabir Ahmed Chairman Pakistan Bedwear Exporters Association, while criticising FBR’s SRO.918 (I)/2019, said that a dedicated head for refund claims, ideally an Escrow Account, should be created. If the collected amount goes into the consolidated fund refund claims become susceptible to government’s ways and means position leading to delays and denials.
The Escrow Account should be monitored by a committee consisting of nominees of FBR and textile exporting associations. If necessary, the government may also include top audit firms, at the expense of the associations.
He said that the association is both surprised and dismayed at the issuance of the captioned notification. FBR seems to have chosen to ignore our request to incorporate our inputs provided vide our letter no. PBEA/FBR/2019 DT: 06/08/2019.
These inputs had also been shared with the DG Exports by the association on the advice of Chairman FBR. The association had also requested the DG to share the draft notification with us and the other concerned Associations before its finalisation, as it would have a strong bearing on the country’s export effort that you are so assiduously promoting.
The association is afraid that the notification that has now been issued would negate government’s export policies that promise zero-rating. It simply fails to take into account the entire supply chain (for instance, it covers a large variety of products/processes like Cartons, Poly Bags, Inlay Cards, Swing threads, Dyeing Printing, Weaving etc.). It will seriously impact our cash-flows and threaten several units with closure. The notification
