Islamabad
\nThe Pakistan Hosiery Manufacturers & Exporters Association (PHMA) on Saturday asked the Federal Board of Revenue to speed up releasing value-added knitwear industry\u2019s sales tax refunds to help ease up its cash flow, especially for payment of wages to its workers on Eid days.
\nPHMA North Zone chairman Naseer Butt said that the value-added export-oriented industry is under extreme financial crunch and is facing losses of billions of rupees as its liquidity remains stuck due to delay in release of sales tax refunds.
\nOur members exporters have been complaining of facing inconvenience and inordinate delays in the payment of sales tax refund claims, as the government has stopped releasing all the sales tax refund claims whereby exporters\u2019 precious liquidity worth billions of rupees have been stuck, he added.
\nNaseer Butt observed that a sharp decline in exports and foreign exchange earnings is hindering production while the government is not giving any heed to the repeated calls to save the export industries, which are facing the most difficult times in history.
\nHe said that the industry continued to suffer due to shortage of gas and constant power breakdowns, shortage of industrial raw materials caused by restrictions on opening of Letter of Credits (LC), discontinuation of DLTL and Regionally Competitive Energy Tariffs.
\nThe knitwear industry had earlier expressed satisfaction over the functioning of the FBR\u2019s FASTER system, which was processing claims electronically as per law and rules without any delay. The FASTER system was introduced to end human intervention and process the sales tax claims electronically, while the new parameters introduced in the STGO involving FBR officials will defer the sales tax claims and again open the floodgates to corruption, he pointed out.
\nHe said that a huge amount of exporters\u2019 liquidity is lying frozen with the FBR. As a result, the textile export industry has become unviable and is on the verge of collapse.
\nThe PHMA chief appealed the FBR Chairman to remove the flaws and rectification of technical glitches in the FBR\u2019s sales tax FASTER system, which has been causing delays in the processing of sales tax refunds, resulting in a liquidity crunch and hampering exports.
\nHe also pointed out several flaws and discrepancies in the procedure that has worsened the grievances of the textile exporters. The FBR is not ready to respond the demands put by the PHMA, which is very unfortunate.
\nHe said that the government has completely ignored the export sector, mainly the value-added textile sector, which is on the verge of collapse owing to the government\u2019s anti-business and anti-export mindset, he lamented and added that the Prime Minister has no time to meet the exporters.
\nHe said that textile exports have dropped significantly by almost 28% in Feb 2023 while in 8MFY23 the decline is around 11% primarily due to a decrease in the value-added textile exports, such as ready-made garments and knitwear. In terms of volume, exports of knitwear, towels, and bed-wear exports fell by 16%, 10%, and 9% respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) on Saturday asked the Federal Board of Revenue to speed up releasing value-added knitwear industry\u2019s sales tax refunds to help ease up its cash flow, especially for payment of wages to its workers on Eid days. PHMA North Zone chairman Naseer Butt said that the value-added […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-323315","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n