KARACHI, Jan 3: A large number of exporters have been served upon show-cause notices by the sales tax authorities, accusing them of claiming double refund of sales tax some about six years ago.

The Collectorate of Sales Tax (West) has issued show-cause notices to a large number of exporters, alleging them to receive double refund of sales tax i.e. at customs stage and from ST collectorate during July 1, 1996 to Dec 31, 1996.

Chairman, Pakistan Hosiery Manufacturers Association (PHMA), Mohammad Kamran Chandna, while refuting the allegation told Dawn that there had never been any ‘double refund’ claims made by exporters at any stage.

Further clarifying, he said that refund at ST collectorate stage was on account of local purchases and that of imported raw materials was at customs stage. Consequently, there is no question of claiming double refund as being alleged by the ST authorities, he added.

He said show-cause notices issued by the CBR without any justification were creating panic and harassment amongst exporters as refund claims made during July 1, 1996 to Dec 31, 1996 period were totally in line with the government policy.

In a recent meeting held with the PHMA members, the collectors of Sales Tax, East and West, asked exporters not to panic or disturbed on receiving show-cause notices and promised to resolve the matter amicably.

Explaining the matter, the PHMA chairman told the participants of the meeting that refund at ST collectorate stage of local purchase was related to yarn and other items and at customs stage it was related to imported raw material such as dyes and chemicals and CBR contention that exporters availed double sales tax refund is not valid.

Collector of Sale Tax (West) Sohail Afzal, agreeing with the PHMA member, said the matter would be referred to the CBR and could also be sorted out with the association and the Karachi Chamber of Commerce and Industry.