Delay in sales tax refund flayed

Published February 17, 2003

FAISALABAD, Feb 16: Local manufacturers and exporters of cloth and fabric products have expressed concern over the delay in sales tax refund and demanded that the government should make arrangements for immediate payment against their claims.

Talking to newsmen here, a group of exporters claimed that due to negligence of the officials concerned, scores of cases of refund had piled up during the last four to six months hampering the export-oriented business and causing a huge financial loss to the national economy.

They said that the federal government had repeatedly announced that sales tax would be refunded without delay and such cases processed within the shortest period. However, they alleged, corrupt officials of the sales tax collectorate were creating hurdles in the way.

They further pointed out that in violation of the federal government policy that refunds should be made on priority basis, the CBR authorities had evolved a novel strategy and issued many SROs to disrupt the process.

They alleged that despite the government’s claim that sales tax refund cases would be decided within 10 days, many of these cases had been pending since July. Exporters are being forced to give a series of clarifications and documentation. Through such tactics, they are being deprived of their legitimate right to sales tax refund.

They further claimed that in these circumstances, exporters were left with no option but to obtain costly loans from financial institutions to meet the expenses incurred on timely export of textile products.

They urged President Pervez Musharraf and Prime Minister Zafarullah Khan Jamali to take cognizance of the situation and direct the authorities concerned to immediately decide sales tax refund cases.

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