ISLAMABAD: Minister for Textile Industry Abbas Khan Afridi was informed that all deferred claims of textile sector would be disposed off before February 28, 2015 and necessary instructions have already been issued.
The minister presided over a meeting on issues of textiles sector with Federal Board of Revenue and stressed that it was a national obligation to bail out textile industry from cash flow crunch. He asked for releasing the stuck up claims textile industry on priority basis as textile exports account for more than 55 percent of foreign exchange of the country.
Chairman FBR, Tariq Bajwa apprised the minister that RPOs worth 8 billion Rs have already been issued for the period July, August and September adding that claims worth 14 billion Rs are classified as deferred payments on account of some deficiencies, whereas claims worth 8.2 billion Rs have been freshly filed.
Further, all the deferred claims would be disposed off before February, 2015 and necessary instructions have already been issued, he added. Chairman FBR highlighted that from July 2014 to January 2015, 14 billion refund claims of the textile sector have already been paid against Rs. 8 billion in corresponding period of last year.
He assured that the refund claims till October 2014 would be cleared before the deadline. Representatives from the textile sector appreciated Textile Minister and Chairman FBR for their cooperation and highlighted that delay in payments is the one of the main issue that keeps hindering their business cycle and requires immediate attention.
It was agreed to make the payment procedure more swift and speedy. Minister was apprised that special excise duty has already been addressed. Minister was requested to look in to the issue of duty draw back claims that remain pending from December 2013.
The Chairman assured that he will look into the matter and would inform accordingly. To further streamline the payments, the Minister invited the stakeholders to come up with recommendations on domestic and export bifurcation and directed his team to make the procedure compliant to international best practices.
Secretary Ministry of Textile Industry, Chairman FBR, Member Inland Revenue Service and textile representatives attended the meeting.
