LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) chairman Adil Butt has urged the government to release the sales tax refund claims of the value-added textile industry, as huge amount of blocked liquidity is creating cash crunch for exporters.
Exporters major portion of working capital is stuck up with the FBR, as the textile exporters have not received their Drawback of Local Taxes and Levies (DLTL) either outstanding for the last many years, he added.
Lauding the prime minister for announcing the long-awaited export package, he said, the industry’s revival package would give boost to the country’s exports only if the issue of liquidity crunch is also resolved on an emergency basis.
The PHMA chairman said though the government issued sales tax refund payment orders (RPOs), cheques were being delayed, which was indeed most alarming and reflected poor financial management of the government.