MULTAN: Former Chairman All Pakistan Bedsheet and Upholstery Manufacturers Association (APBUMA) Syed Mohammad Asim Shah said textile sector new sales tax policy has led to capital shortages. Almost 70 percent sales tax payment claims of textile industry are pending due to various reasons. He stated that the export sales are not being audited at the local Regional Tax Office as there is no relevant forum available for processing sales tax claims to be rejected or deferred due to ambiguity in the new sales tax policy.
The domestic economy is facing a complex situation even though national imports are declining but exports are not in proportion and the reduction in import duties has made the target of revenue collection almost impossible.
He said that Federal Board of Revenue has recovered Rs.1.28 trillion during the first four months of ongoing fiscal year against the target of Rs.1.44 trillion and it is also clear evidence that economic activities have also slowed down due to import compression.
Syed Muhammad Asim Shah requested the government to bring interest rates to single-digits immediately so that the supply of capital to the local economy could be boosted by increasing productivity.
Former chairman APBUMA has urged the government to tackle the problem of export sector in order to achieve economic stability, which requires the exporters to pay billions of rupees stuck with the government immediately.He added that policy doubts against taxes should be resolved immediately so that issues can be resolved quickly without interruption.
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