All Pakistan Textile Mills Association (APTMA) chairman, Muhammad Yasin Siddik, has urged the Government of Pakistan to clear the outstanding tax refunds, as committed by the Federal Minister for Finance and Economic Affairs, Muhammad Ishaq Dar, in his Budget speech.
In a statement, Mr. Siddik said that a large amount of sales tax refunds was pending since one and a half years, which has led to severe financial crisis for the textile industry. The Government has not made any tax refunds since the last two months to the large textile units in Pakistan, although the textile sector has appreciated the Government for clearing refund claims of smaller textile units, of about Pk Rs. 1 million, he added.
Although the Finance Minister had committed that all the outstanding sales tax refunds would be cleared by the September 30, 2014, according to Siddik, this was impossible as the Government has to first remove the procedural constrictions in refunding the tax within the stipulated time.
Mr. Siddik said that if the Government would clear the refunds on time, it will not only help build trust in the tax system of the country, but also help the tax authorities to set up reforms in the system. He further said that fast track refunds rules must be ensured for the best interest of the industry and economy.
The APTMA chairman pointed out that in order to fetch a good price for the country’s products in the international market, the consumption of man-made fibres should be encouraged by exempting them from customs duty and other taxes.
To meet the challenge of doubling the textile exports in Pakistan, it is important that Pakistan should follow the international trend and increase the use of man-made fibre in the local spinning and weaving sector, he further added.
He said that although all the formalities had been done by the APTMA members, the reimbursement against the Technology Up-gradation Fund is also pending for the last two years, and the Export Finance Mark-up Rate Support and the Drawback on Local Taxes and Levies Scheme was pending for about three and a half years.
He urged the Government to release the funds in these schemes, as the mills had already recorded these in their financial statements. (GK)
