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Sales Tax Dept assures to settle all claims of PLGMEA

18 Nov '08
3 min read

A Delegation of Pakistan Leather Garment Manufacturers & Exporters Association (PLGMEA) met Mr. Khalid Mahmood, Collector Sales Tax (Enforcement), Karachi to discuss Pending Sales Tax Claims of PLGMEA Members. PLGMEA Delegation was led by Mr. Fawad Ijaz Khan, Chairman PLGMEA. Additional Collector Syed Shahenshah Hasnain and Deputy Collector Mr. Asshad Jawwad also attended the meeting.

Mr. Fawad apprised the Collector that Exporters were facing problems in getting refund of Sales Tax since June 2008. All refunds are blocked since June 2008 and exporters were not getting any refund. Mr. Khalid assured PLGMEA Chief that the Collectorate will expedite the release of pending Sales Tax Refund claims and clear all pending claims within one month. Old pending claims with objections of Non-Filer, Scrutiny and Summary-not-submitted claims should be referred to Collectorate after necessary verification from the Regional Tax Office (RTO) Karachi.

Mr. Fawad informed the Collector that many exporters had their Sales Tax Refunds blocked due to black-listing of some of their suppliers. Mr. Fawad elaborated that many genuine Exporters faced this problem even when the supplier defaulted after their Invoice date. He informed Mr. Khalid that exporters are normally dealing with hundreds of suppliers and practically cannot verify each and every Invoice of their suppliers. He requested the Collector to recommend to FBR to reconsider this issue of Black-listed suppliers to bail out genuine exporters. Mr. Khalid agreed to discuss this matter with top FBR officials for final settlement of this long outstanding issue.

Mr. Fawad Inquired about the procedure for late submission of Refund Claims after 60 days allowed after filing of Sales Tax return. The Deputy Collector clarified that exporters can request 30 days extension from the Collectorate. The Collectorate can condone delays upto 30 days after allowed time of 60 days.

Mr. Fawad discussed zero-rating of Leather Garment exporters for Electricity & Gas purposes. Some exporters have been zero-rated for Electricity consumption while several others have not been given this exemption. FBR has not yet notified exporters from exemption of Sales Tax on Natural Gas consumption. Collector asked PLGMEA to submit the list of such qualifying exporters who have not been granted exemption and they will get them exempted.

Mr. Fawad also inquired about the status of stock purchased prior to zero-rating in 2005 and consumed till December 2005. The Collector informed PLGMEA Chairman that refund is being given on such consumed stock.

In the end PLGMEA Chief Mr. Fawad Ijaz thanked the Collector Mr. Khalid Mahmood for taking the time out of busy schedule to listen to the problems of Leather Garment Exporters and suggesting solutions.

PLGMEA

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