Govt releases Rs100b refunds to exporters

ISLAMABAD: The government has released Rs100 billion refunds to exporters as announced by Prime Minister under relief package of Rs1,240 billion.

Adviser to PM on Finance & Revenue Dr Abdul Hafeez Shaikh noted that these are unprecedented steps taken by the government to support business and employment in difficult times.

The tax refunds released to the industry are the highest in Pakistan’s history. Dr Shaikh stated that the government stimulus package aims to address the liquidity challenges faced by the industry. Improved cash flow position of the companies will ensure that workers get their salaries on time.

All tax refunds as of 31st March 2020 have now been cleared and the payments made include Rs52 billion in GST refunds to Industry (other than export industry), Rs10 billion released to the export industry through the FASTER system and Rs15 billion in duty draw back payments. On top of these payments the government also released Rs20.5 billion under the DLTL scheme.

During the current fiscal year (Jul-Mar FY20), the government has so far released Rs163 billion in tax refunds to industry (under GST and income tax), which is a 61.4% increase from Rs101 billion released (Jul-Mar FY19) last year.