June 4, 2003	Wednesday	Rabi-us-Sani 3, 1424

KARACHI, June 3: The molasses exporters have sought Minister for Finance Shaukat Aziz’s intervention for the release of huge outstanding sales tax refunds.

In a letter to the minister the molasses exporters’ wing of Terminal Association of Pakistan (TAP) has pointed out that 95 per cent of the estimated 1.7 to 2 million tons of molasses produced in the country is exported.

Therefore, the TAP urged the minister, the molasses export may be exempted from sales tax in the forthcoming federal budget and put it in the category of Duty and Tax Remission on Export (DTRE) scheme.

The delay in payment of sales tax refund results in liquidity problem which ultimately damages the export trade of the molasses which fetches around $60 to $80m in foreign exchange.

The sales tax on molasses is zero rated, which is ultimately refunded, but TAP regretted the refund procedure is not only complicated, but time consuming as well.