May 31, 2003	Saturday	Rabi-ul-Awwal 28, 1424

KARACHI, May 30: The Regional Commissioner of Income Tax, Corporate region, Karachi, Shahid Jamal on Friday, asked the textile industry leaders to pay their taxes in time.

In a meeting with the members of All Pakistan Textile Mills Association (Aptma), the RCIT, however, assured full cooperation in resolving their day to day problems.

The Aptma members sought his intervention in those cases, which had been decided by the income tax tribunal and high court with regard to reassessment, withholding tax and allowances.

In another meeting with the RCIT a delegation of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) led by its chairman Fawad Ijaz Khan it was resolved that all income tax problems faced by exporters would be taken up on priority basis.

The PLGMEA chief informed the RCIT that exporters are facing difficulties in obtaining exemption certificates on imports, which are only issued on LC basis.

It was suggested that a maximum ceiling of quantities of imported inputs may be specified for import on general basis keeping in view the past performance of exporters. This will save considerable time of exporters in clearing imported goods required on emergency basis.

Fawad pointed out that some exporters were facing problems due to withholding tax deduction at one per cent on purchase of raw materials from suppliers. The PLGMEA delegation proposed to exempt collection of withholding tax on purchase of raw hides and skins for leather garment exporters.

He also brought to the notice of the RCIT that exporters are not receiving refund of income tax and their amounts were being adjusted against the disputed Workers Welfare Fund (WWF), which is under litigation in the supreme court.

Referring to the points raised by the PLGMEA members, the RCIT Shahid Jamal assured the PLGMEA members that both the matters will be taken up with the CBR for approval and implementation. With regard to WWF, Shahid Jamal said since it was being carried out as per CBR’s instruction, therefore, this matter will also be referred to the CBR.

Fawad said that exporters who file their income tax returns under section 143-B of Income Tax Ordinance 2001, are being unjustly asked by officials of tax department to provide various account books of suppliers throughout the year. He proposed that the department should fix such monitoring only at the time of assessment.