The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) recently expressed his disappointment over the performance of the Federal Board of Revenue's newly-launched Fully Automated Sales Tax e-Refund (FASTER) system as the commitment of the government to release exporters' refunds within 72 hours is yet to be fulfilled.
PRGMEA chairman Chairman Sohail Sheikh urged Prime Minister Imran Khan to immediately implement his directives as exporters are facing a severe liquidity crunch due to delay in payment of sales tax refunds despite the launch of the new system, according to Pakistani media reports.
Timely payment of refund claims is still a major issue and needs resolution on high priority, he said. Despite the FBR commitment that sales tax refunds will be paid within 72 hours of submission of claims, billions of rupees of exporters are stuck on account of sales tax refunds, he said.
Initially, exporters faced lots of hardship in filing their sales tax returns for getting refund as the FASTER system never worked because of flaws in ‘annexure H’ of the system, he added.
Fibre2Fashion News Desk (DS)