ISLAMABAD, Jan 7: The Central Board of Revenue has paid Rs37.75 billion refund/ rebate to exporters during the first six months of current fiscal against Rs23.4 billion it paid in the same period last year, showing an increase of 61.32 per cent.

And during December, the tax authorities paid Rs7.05 billion refund/rebate to exporters against Rs3.55 billion of last year, an increase of 98.59 per cent.

Official figures released here on Monday, showed that the tax authorities paid Rs21.309 billion refund to exporters under the head of sales tax during the July-December period of current financial year as against Rs12.52 billion it paid during the same period last year, showing an increase of 70.19 per cent.

Under the head of customs, Rs16.37 billion rebate was paid to the exporters during the first six months of the current fiscal as against Rs10.69 billion it paid over the corresponding period last year, an increase of 53.13 per cent.

Earlier, the tax authorities had paid Rs30.7 billion during the first five months of the current financial year as against Rs20.4 billion it paid during the same period last year, showing an increase of 50.49 per cent.

A senior official told Dawn that high quantum of rebate/refund paid out in the first six months was meant to offset the negative impact of the Sept 11 events on the country’s exports.

This, he says, will help exporters who face financial crunch following the cancellation of their orders in the aftermath of the Sept 11 incident.

President Pervez Musharraf, seeing the massive decrease in the country’s imports and exports, had directed the CBR to release maximum refund/ rebate to give exporters some relief.

Pakistan is already facing huge trade deficit as well as a dwindling foreign investment as a result of the Sept 11 happenings. Officials estimate around $2 billion shortfall in the national economy during the current financial year.