FAISALABAD– Exporters are unable to fulfill their export commitments due to extreme liquidity crunch coupled with cash flow problems as government has failed to clear the pending refund claims to the tune of billions of rupees.
In a joint statement issued on Tuesday, Chaudhary Salamat Ali Central Chairman, the Pakistan Hosiery Manufacturers & Exporters Association, Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum, and Mian Naeem Ahmed Chairman Pakistan Hosiery Manufacturers & Exporters Association (North Zone) alleged that government is unable to fulfill its repeated commitment to clear the refund payments expeditiously.
They said that despite of this crisis, Textile sector remained the most vibrant sector of the economy with its share of 60% in total export of the country.
PHMA leaders enumerated the problems directly faced by the hosiery sector and told that stuck up refund claims (Sales Tax, Income Tax, Duty Drawback & Textile Policy incentives etc.) and high priced Energy inputs are adversely effecting the production, employment and Exports.
They demanded of the government to honor the commitment and ensure swift payments to exporters against their refunds, within 72 hours after submission of sales tax refund claims otherwise government should restore the zero rating of sales tax (0%) – no payment no refund regime for the five export sectors.
They also demanded that sales tax on utilities should not be charged to exporters as they fall under final tax regime.— PRESS RELEASE