‘Clearance of tax refunds to shore up exports’

KARACHI: Muhammad Jawed Bilwani, chairman Pakistan Apparel Forum (PAF), on Friday showered the government with kudos for finally starting releasing sales tax refunds, giving the country’s dwindling exports a much needed impetus.

The refund payment orders (RPOs) valuing up to Rs1 million, issued until 30th April, 2017, were cleared on July 15, 2017, while orders involving more than Rs 1 million shall be paid by  August, 14, 2017. “Following the payment of refunds, exports are likely to pick up as an improved liquidity position will definitely enable exporters to launch new shipments,” Bilwani said in a statement. It must be noted that the finance minister had given his word during the budget 2017-18 speech that this longstanding issue would soon be resolved.

Praising the finance minister for keeping his promise, Bilwani urged the government that instead of waiting till August 14, the payments should be cleared as soon as possible so that businessmen could plan investments for balancing, modernisation, and replacement. “It will leave a good impression on foreign buyers,” he said. In the first phase, the payments were made in a ceremony held at Federal Board of Revenue under the chair of finance minister last Saturday. He said that as yet, out of Rs180 billion export incentive package announced by the Prime Minister, only Rs3 billion have been released to exporters under Duty Drawback of Taxes (DDT) claims. 

Wrapping up his statement, Bilwani hoped that the refunds as well as custom rebate, duty drawbacks, and taxes refunds would all be paid in time.