ISLAMABAD, Jan 22: The tax authorities have withheld a sum of Rs30 billion against refund payable to major exporters across the country during the first half year of the current financial year.

Well-placed sources in the commerce ministry told Dawn on Wednesday that the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has taken up the issue with the high ups for its immediate consideration.

Following the demand of FPCCI, sources said, that chairman, Central Board of Revenue (CBR), Riaz Ahmed Malik and member, sales tax, Ramzan Bhatti is scheduled to meet on Thursday with the FPCCI members in Karachi to work out the actual amount withheld during the first half of the current financial year.

According to the sources, the exporters have asked the tax authorities that they could produce documentary evidence of the refund withheld by the tax authorities during the first six months of the current financial year.

However, the sources said that the tax authorities were of the opinion that they will have to pay Rs10 billion as refund to exporter under the head of sales tax.

The sources further said that it was expected that during the meeting the exact quantum of refund would be agreed by both sides along with time limit for its release to exporters.

The exporters were of the opinion that they were facing financial crunch in the market as the tax authorities have withheld their due refund due to which they could not carry out further export of commodity, which might harm their contracts with buyers.

They demanded of the government to expedite release of the refunds to exporters.

Official statistics made available to Dawn showed that the actual release of refund/rebate to exporters has decreased steadily by 15.81 per cent during the first six months of the current financial year over the same period last year.

Under the head of sales tax, the tax authorities released refund of Rs21.061 billion during the same period this year against Rs21.280 billion over the corresponding period of last year, showing a decline of 1.02 per cent.

Further break-up showed that the tax authorities paid Rs173 million to exporters at the import stage during the first six months of the current financial year against Rs143 million of last year, showing an increase of 21 per cent.

The refund payable to exporter during the same period this year at domestic level, however, declined by 1.2 per cent to Rs20.88 billion this year against Rs21.137 billion refund of last year.

Similarly, the tax authorities released Rs10.690 billion rebate to exporters under the head of customs against Rs16.436 billion, showing a decline of 35 per cent.

The total amount paid as refund/rebate to exporters during the July-December period of the current financial year stood at Rs31.751bn this year against Rs37.716 billion during the same period of last year, showing a decline of 15.8 per cent.