Govt to clear outstanding rebate claims next month

KARACHI: Government will settle the outstanding rebate claims of the last one year by next month, a senior official said.

Manzoor Hussain Memon, chief collector of Customs Exports said the customs department has already disbursed rebate amounts till May 2017.

Memon said usually authorities stop rebate amount around four months before a fiscal yearend.

“This is the first time when the rebate amount is not being stopped,” he said, addressing the exporters at an event organised by Pakistan Hosiery Manufacturers and Exporters Association.

The chief collector said there is a backlog of 11 months and the customs is paying rebate amount every month.

Memon said the industrialists take assistance of clearing agents to resolve their issues. He said the government will immediately clear rebate claims prior to May 2017.

The collector said the customs is doing its best to resolve the industrialists’ problems. The situation would be improved from July. Memon said the government will complete its tenure this month and is spending huge amount on current and development expenditures.

Finance Minister Miftah Ismail, early this month, assured the businessmen that the government would settle Rs100 billion of tax refunds before of the end of its term.

The minister, on rebate claims, said exporters would get money this month “and even more money next month”. “Your sales tax returns will not be more than Rs200 billion,” he remarked; although exporters claimed that alone their sales tax refunds amounted to more than Rs300 billion.

Jawed Bilwani, senior member of Pakistan Apparel Forum said billions of refunds and rebates of exporters are stuck, creating serious liquidity problems.

Bilwani stressed the need to improve the exports of the country. Prime Minister Trade Enhancement Initiatives, envisaging incentives, could not remain beneficial for the traders. He criticised customs examination of goods. There should be separate 24-hours examination of export goods in order to enhance clearance process.