"No payment no refund System" for the value-added textile sector be introduced

MULTAN, Jan 27th: Chairman of All Pakistan Bedsheet & Upholstry Manufacturers Association (APBUMA) Syed Muhammad Aasim Shah said the exporters and  value-added textile sector is facing serious financial crisis, because more than Rs 205 billion of the value-added textile chain has been stuck up with the government.In his welcome address at a reception hosted in the honour of Chief Commissioner of RTO Multan Zubair Bilal, Commissioner withholding tax Imtiaz Ahmed,Abid Hussain Gulshan Deputy Commissioner Head Quarter, Syed Aasim Shah said that he had already submitted a report on the problems confronted by the exporters due to financial crunch.APBUMA Chairman pointed out that untrained and raw-hand staff of sales tax was main hurdle in the clearance of their claims and suggested that more staff must be recruited for early disposal of sales tax refund cases.Syed Aasinm Shah said that millions of rupees refunds of ST and Customs Rebates payable to the exporters have been held up despite firm assurance by the government that all refunds of the exporters would be cleared immediately.He said that the Federal Board of Revenue still withholds more than Rs 13 billion under Drawback on Local Taxes and Levies (DLTL) claims and about Rs 17 billion sales tax under refund claims, causing immense problems to textile industry.He said that there was no facility of showing the reason behind rejection of sales tax claims since a concerned port was  closed.Previous system must be revived to facilitate the on-line filers.He expressed his concern on the issuance of notice under section 73 to exporters for post-audit record and A decade old record was being demanded from the exporter while they are bound to maintain only 5 year record as per law. Former Chairman of APBUMA Khawaja Muhammad Younas said that export sector was a backbone of the country and they are battling hard for their survival in the global market in the face of severe competition from neighbouring countries and struggling to meet export commitments despite most adverse factors. He also demanded of the government to provide gas to manufacturing units at lower rates so that they could compete globally.He further said that Government should facilitate the exporters and suggested the government to restore the "No payment no refund System" for the value-added textile sector because collection of two percent sales tax and then refunding is not only an exercise in futility but involves a large number of FBR personnel and precious time of FBR which can otherwise be utilised to bring more sectors in tax net to enhance revenue. Chief Commissioner Zubair Bilal said that we have already referred the Suggestions/proposals of APBUMA to head quarter while local issues were resolved expeditiously.Chief Commissioner said that his doors were open for traders,exporters and other tax-payers and he was accessible for all round the clock. The reception was highly useful in that it addressed various ambiguities and misgivings about the disposal of refund cases on part of the participants . It was resolved that further interaction on the matter will continue at association level so that their grievances could be redressed.The RTO team assured full cooperation to the member of APBUMA.The reception was also attended by Khawaja Muhammad Yousaf, Khawaja Muhammad ilyas, ex-Presidents of Chamber,Muhammad Ahmed Chughtai,Ex-Chairman of Multan Dryport trust, Khawaja Muhammad Farooq,Syed Ahsan Shah, Syed Fazil Shah.