Daily Times

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lauded the government’s decision to release stuck-up sales tax refunds worth Rs 50 billion in the running month.

Finance Minister Ishaq Dar is fulfilling his commitment by releasing one-fourth of the total refunds, which will improve confidence in the business community and boost exports, FPCCI President Abdul Rauf Alam said in a statement.

Almost all the pending refunds whose refund payment orders (RPOs) have been approved until April 30 will be paid shortly, which will boost business activities across Pakistan, he said.

Alam said that after the payments, the FBR would start the process to clear the entire amount under all the heads, including sales tax, income tax and duty drawback – estimated at Rs 201 billion – within a few months.

The business community had been urging the government for the last two years to clear all the pending refunds, as the export sector was facing a serious liquidity crunch due to its accumulation, he added.

The FPCCI president said that suspension in release of refunds caused issues for the exporters, adding that the government recently announced a mechanism of ‘no-payment, no-refund’ for five export sectors in order to avoid creation of refund claims.

He lauded the efforts of the FPCCI leaders, various chambers and business associations, United Business Group and its Secretary General Zubair Tufail who worked for months to get the refunds released.

The veteran business leader lauded Ishaq Dar for directing that every effort should be made to facilitate the business community, including exporters, as finalisation of refunds would help in increasing business activity in the country. He demanded that steps should be taken to release all the refunds as soon as possible.