October 17, 2002	Thursday	Sha'aban 10, 1423

KARACHI, Oct 16: The exports of value-added textile goods are in great danger because of inordinate delays in payment of sales tax refund claims which result in liquidity crunch for the industry.

In a statement issued on Wednesday, chairman, Pakistan Hosiery Manufacturers Association (PHMA), Aslam Ahmed Karsaz has held the Collectorate of Sales Tax (East) and (West), Karachi responsible for pushing the industry into crisis by delaying the payment of refund claims.

Despite fulfilling entire documentary requirements and submitting proofs for the sales tax claims with both the collectorates no action has been taken and millions of rupees of exporters were held back by the CBR, he added.

He said when export oriented industry is zero rated then as to why their own funds are blocked in sales tax refund. Karsaz said these held up funds are blocked with the CBR how the industry would keep running without much needed cash flow.

He appealed to the chairman, CBR to advise the sales tax collectorates, Karachi, for immediate release of pending claims so that exporters could meet their export contracts.