It may be noted that the FBR has assured Finance Minister Asad Umar of speedy payment of pending sales tax refunds and duty drawbacks to exporters during his visit to the FBR early this month. The FBR informed Asad Umar that it will clear the backlog of refunds of sales tax/duty drawbacks in line with the government's 100-day agenda to improve liquidity of the exporting enterprises. A proposal is under consideration that the sales tax refund claims and customs duty drawback may be paid by State Bank of Pakistan through the authorised dealers immediately at the time of realisation of export proceeds. The Treasury Rules, 1997 may be amended to this effect, if needed.
The industry representatives assured the tax authorities of submitting details of their claims, which is likely to be submitted in a day or so. Meanwhile, they have also urged the tax authorities to ensure an environment conducive to growth in exports in line with the vision of the prime minister. They said the prime minister has assured of providing enabling environment for the revival of five zero-rated export-oriented sectors and steps are being taken by the government in this effect.
However, talking to this scribe, they have still expressed their doubts over a speedy dispensation of their claims, saying it would be a herculean task for the Board due to the revenue shortfall during the first quarter of the current financial year. According to them, the FBR would prefer to hold back refunds and drawbacks claims to show a rosy picture of its collection.
It may be noted that over Rs 100 billion refunds and drawbacks claims of the export industry are stuck up with the FBR. The previous PML-N government had also been announcing of early disposal of these claims in every year budget but to no avail, which has resulted into liquidity crunch in the export industry and closure of many a units across the country.