Finance minister promises to release 33% tax refund claims.

Byline: Usman Hanif

KARACHI -- Finance Minister Asad Umar has assured value-added textile exporters of releasing their longstanding tax refund claims worth Rs12.5 billion next month.

The minister extended the assurance while receiving a delegation of the Towel Manufacturers Association (TMA) at his office in Islamabad, led by Chairman Farrukh Maqbool. The finance minister promised to release 33% of the total refund claims of the value-added textile sector, which have reached Rs38 billion under the head of Drawback of Local Taxes and Levies (DLTL). The minister presented a solution to the group of businessmen that the government would refund 33% of the total amount and the rest will be dispatched in shape of profitable bonds.

To achieve this, Umar directed the Federal Board of Revenue (FBR) to devise a mechanism through which exporters would receive refunds without trouble.

The FBR decided to create a summary in January 2019, to proceed further with the process. The mechanism is focused on ensuring that exporters...