ISLAMABAD, April 25: The Central Board of Revenue has asked all collectors of sales tax to withdraw contravention cases against various exporters made in connection to double payment of sales tax refund. A CBR official told Dawn on Monday that the decision of withdrawing cases against exporters was taken in a meeting of the Economic Coordination Committee (ECC) of the cabinet held recently.

The ECC also asked the CBR not to press any more the exporters for recovery of the amount involved in such cases, added the official.

In the budget 1996-97, a new system of zero rating of GST was introduced. The first six months were treated as transition period for the new system. In July-September 1996, both sales tax rebate and refund of sales tax on the basis of input tax invoices were allowed.

Similarly, in October-December 1996, sales tax rebate rates were gradually slashed down and exporters of textile goods, other than yarn and grey fabrics, were allowed to take sales tax rebate on reduced rates as well as sales tax refunds provided relevant rebate notifications did not debar such payments.

Later on the CBR changed its stance and concurrent payment of rebate as well as refund were construed as extra legal concession, which led to numerous contravention cases against the exporters.