Textile exporters in Pakistan have demanded the immediate release of refunds within 72 hours under Section 39F of the Sales Tax Rules 2006, warning that the non-receipt of refunds and duty rebates is causing problems and challenges for the exporting industries. In a statement issued on Wednesday, Muzammil Hussain, Secretary of Towel Manufacturers and Exporters Association, said that exporters are facing difficulties in getting sales tax refunds and duty drawback claims in time, and are having to get loans at high interest rates to meet their financial needs. This has led to an increase in the production cost of export products, making them less competitive in the global market.

Hussain also criticized the Federal Board of Revenue (FBR) for fixing a limit of 12% on GST refunds, despite the fact that the GST rate on exports has been increased from 17% to 18%. He said that this is a "very surprising situation" for exporters, who are being forced to pay 18% GST but are only entitled to a refund of 12%. "We are unable to understand why FBR fixed the limit of 12%," Hussain said. "FBR needs to review this limit."

He urged the government to take immediate steps to address the concerns of textile exporters, and to ensure that they receive their refunds and duty drawbacks on time. "The government needs to provide support to the textile sector to enable it to compete in the global market," Hussain said. "The textile sector is a major contributor to the Pakistani economy, and its success is essential for the overall economic growth of the country."

 
Credit: Independent News Pakistan (INP)