FAISALABAD, Nov 30: Textile exporters are unable to book fresh export orders as over Rs1,500 million are stuck up in sales tax refund.

Talking to newsmen here on Saturday, Khurram Iftikhar, chairman, All Pakistan Cloth Exporters Association (APCEA), said the implementation of new sales tax rules had been made very complicated, long winded and cumbersome, causing delay in payment of sales tax refund.

Citing specific instances, the APCEA chief pointed out that in Faisalabad refund of gold category holders has a backlog of three months above the regular refund period, and in cases where refund on stocks was to be reimbursed in 40 days the delay is of 8-12 months. Similarly, regarding non-gold category cases the refund in Faisalabad is already 6 months late over and above the specified period, while in case of refund on stocks for this category there is also a delay of 8-12 months.

He said almost whole of the capital investment of exporters had been blocked in ST refund system, adding in certain cases the bank credit availed by the exporters had also gone into the coffers of the sales tax department and the exporters were paying interest on that amount.

Yet another hardship faced by the exporters in the wake of implementation of new sales tax rules that the supplementary claims filed by the exporters are not being processed on the plea that the claim documents require verification which cannot be undertaken due to inadequacy and shortage of requisite staff strength. Consequently, the supplementary claims prior to 1998 are still pending and exporters are suffering heavily at the hands of sales tax department.

Mr Khurram appealed to the quarters concerned to take immediate cognizance of the matter and intervene favourably to relieve the exports of the hurdles which consume most of their time and energy and enable them to devote their time and energy for promotion of exports and earning precious foreign exchange.