Despite the FBR's tall claim that it will now pay sales tax refunds through the newly installed 'FASTER' system to exporters of five sectors within 72 hours of submission of refund claims, sales tax refunds have not been paid yet, they added. They informed that when exporters asked State Bank of Pakistan (SBP) about the delays in payments of approved RPOs of exporters, the State Bank officials informed that exporters' refund amount cannot be credited unless the FBR gives such intimation in writing.
"To our utmost surprise on one side the government is claiming to expedite exporters refund claims through fast payments and also introduced automated FASTER system while on the other side SBP requires necessary instructions to credit the refund amount," they added.
They said that billions of rupees of exporters in sales tax have held up with the FBR as a result they have been facing severest financial hardships and are unable to procure materials/inputs for manufacturing goods meant for exports.
"To crown this all, due to pending refunds, running capital of the exporters are diminishing and exporters are compelled to buy input goods on credit. Hence, exporters cannot quote rates to their foreign buyers due to this uncertainty," he maintained.