LCCI President Abdul Basit in a statement on Tuesday said the industries in Punjab are on the verge of collapse and dozens of industries are closing down on daily basis. Though shortage of electricity is a contributory factor, 24/7 supply of energy is ensured for the last six months or so. The last nail in the coffin of industrial sector is being pushed by the FBR by refusing to release refunds stuck up with them for the last so many years, he said.
Sometimes a major portion of the refund is 'deferred' due to inexplicable reasons for which no details are given. Most of the time brief answer is given that FBR's computer system has automatically 'deferred' it or 'rejected' it. From July 2016, the coal and diesel was made zero rated for five export sectors for which a separate general order had to be issued by the FBR for every exporter but requests are still pending in this regard at the FBR Lahore office. Most of the industries in Punjab are shifted to coal as such the major refunds are also stuck due to 17 percent sales tax on coal.
The industries in Punjab are closing as their major working capital, which is blood line of any business, is stuck with the government. He urged the Punjab Chief Minister and Prime Minister's Advisor on Finance to rescue the industrial sector of Punjab by releasing the stuck up refunds.