PRGMEA worried as sales tax refunds start to get delayed again

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The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Saturday expressed its disappointment over the performance of the Federal Board of Revenue’s refunds system, voicing the fear that it has not been able to release the sales tax refund claims timely because amount of exporters’ liquidity has started to stuck up due to irresponsible and uncaring approach of the authorities concerned.
PRGMEA Central Chairman MubasharNaseer Butt, while addressing a hurriedly called meeting of the association held here today in view of inordinate delays in exporters’ sales tax refunds, urged the government to immediately release refunds claims of the textile industry, as the government had committed that the exporters’ refunds payment orders (RPOs) would be issued in 24 hours while refunds would be cleared within 72 hours of the issuance of the RPOs, but practically this commitment is not being fulfilled, as the 72 hours are being extended to several weeks.
Mubashar Butt said the government needs to take immediate measures to arrest the slowdown in textile exports, as these policies would bring Pakistan’s most valuable sector on the verge of collapse.He recalled that the government had created a culture of trust among the business community by paying refunds timely, which was appreciable, but the situation has now changed. “We are presently facing gaps and the authorities are not ready to give us reason of delay; even they don’t attend our phone calls, creating a trust deficit and sending a wrong message to the exporters of the value-added textile industry, which is the backbone of the economy.”