SIALKOT, Dec 5: The Pakistan Gloves Manufacturers and Exporters Association has expressed concern over the slow processing of sales tax refund cases, although all the required formalities are fulfilled.

It said due to delay in refunds exporters had to face acute cash flow problems. “Some cases have been pending for the last two years and stuck up refund amount is about Rs600 million.”

In a representation to the Central Board of Revenue, Sheikh Muhammad Yaqub, chairman of the association, said the refund issue should be resolved without any delay in order to create a better understanding between the business community and the sales tax department.

He says the economic revival depends greatly on satisfactory export performance and any setback to it means a dent in the efforts to stabilizing the economy.

He pointed out that the attitude of file receiving personnel was very rough and rude. No fixed timings are observed for receiving the files, hence causing unnecessary tension among the individuals. He said the time limit specified in the act be strictly followed by the department. “Cases took months and years in processing and if there is any objection, no show-cause is served to the claimants.”

He claimed that thousands of cases were lying pending without any action. He requested for the formulation of special policy for early disposal of these cases. Time to time, the department declared units as suspected and the total refund payable to the exporters regarding these units are withheld by the local sales tax office.

In this situation an exporter was bound to pay amount within 120 days, whereas no refund was sanctioned to the exporter, he said, adding even cases in which the CBR had removed the names from “suspected units list”, the sales tax amount was not yet paid to the exporters.