STAFF REPORTER
LAHORE: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chairman Sohail Sheikh has expressed his concern over the performance of the Federal Board of Revenue’s newly-launched Fully-Automated Sales Tax e-Refund (FASTER) system as the commitment of the government to release exporters’ Sales Tax refunds within 72 hours has not been fulfilled yet, affecting SMEs severely.
“PRGMEA welcomes Prime Minister Imran Khan’s directives to the Federal Board of Revenue to clear pending refunds of exporters, removing bottlenecks from the new refund payment system of the FBR,” he said here on Monday.
He asked the PM to also get his directives implemented on immediate basis and in their true spirit, as the exporters especially of SME sector, are facing a severe liquidity crunch due to delay in payment of Sales Tax refunds despite launch of new system by the FBR.
‘At a time when banks are already reluctant to finance small industrial units amidst tight monetary policy the exporters need more quick and speedy system of refunds payment of their own money’.
Moreover, he added that the Small and Medium Enterprises sector in the country needed proper financial facilitation and friendly policies’ support.
PRGMEA chief said that the government and the financial institutions were more inclined towards the large scale business set-ups and industrial units. He said that it was evident from the economic development history of big economies around the world that the economic well-being and strengthening has resulted from the progressive development of SME sector in their countries. Keeping eyes on the economic future and building Pakistan as a nation of prosperous and developed people, the business communities, economic scholars and different forums in Pakistan have been voicing for the SME sector development.
He urged commercial banks to improve access for the SME sector that contributes heavily to the country’s GDP, generating employment on a large scale. Despite significantly contributing to the GDP, exports and employment generation, the financing percentage of SMEs remains pathetic in the overall financing to customers of various levels.
He said that timely payment of refund claims is still a major issue and needs resolution on high priority especially for the SME sector. He said that increase in exports of the country is a very important objective as far as improvement of economy of the country is concerned. He observed that it should be the utmost priority of the government to facilitate exporters of the SME sector in every possible way.
He said that the exporters of small scale are unable to procure and purchase raw materials and other accessories for fulfilling their future export orders and this will ultimately collapse the entire export trade, he added.
Sohail Sheikh said that the FBR had claimed that it would pay sales tax refunds through the newly installed Fully Automated Sales Tax e-Refund (FASTER) system to exporters of five sectors within 72 hours of submission of claims. However, despite repeated assurances, the system still has deficiencies which make sales tax refunds impossible.
He demanded the the FBR to release all refund claims of the export sector at the earliest.
