Exporters for ‘no payment, no refund’ system
SIALKOT: Exporters on Monday urged the federal government for revival of ‘no payment, no refund’ system which they stressed was necessary for overcoming the liquidity crunch and eliminating corruption in payment of refunds.
The demand was made at a joint press conference held at the Sialkot Press Club. Chaired by Chief Coordinator Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Ejaz A. Khokhar, the conference was addressed by Vice President Sialkot Chamber of Commerce and Industry (SCCI) Syed Ehtesham Gillani, Chairman Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) Irfan Elahi, Chairman Pakistan Gloves Manufacturers and Exporters Association (PGMEA) Malik Sadaqat Ali Khan and representatives of Surgical Instruments Manufacturers Association of Pakistan (SIMAP) and Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA).
Mr Khokhar said instead of giving export-related incentives, the government was overburdening exporters with taxes which were increasing the cost of doing business and rendering Pakistani exports uncompetitive in international markets.
He said none of the export oriented sectors represented at the press conference made any development due to visible bureaucratic hurdles.
He said on Sept 11, 2015, Prime Minister Nawaz Sharif committed to announce an incentive package for exporters in a meeting with exporters in Islamabad as well as zero-rated regime for these sectors but so far these steps were not taken.
He said due to delay in payment of refunds, exporters were facing shortage of working capital.
It is suggested that automatic compensation to exporters should be allowed which could be equivalent to 14 per cent per annum of the outstanding amount for the period after seven days of issuance of Refund Payment Orders (PROs) by the concerned RTO.
There are number of small exporters who are registered with sales tax only to avail the facility of WEBOC but could not file NIL returns. There is no loss of revenue for not filing of such returns;
Published in Dawn, May 24th, 2016