PHMA hails speedy payment of sales tax refunds.
Lahore -- The value-added textile industry has hailed the government efforts of speedy payment of exporters' sales tax refund claims within 72 hours but raised concern over deferment of some payment under the Fully Automated Sales Tax e-Refund System (FASTER) without providing any substantive reason. Pakistan Hosiery Manufacturers and Exporters Association (PHMA) vice chairman Shafiq Butt observed that a mechanism should be finalised to find out the reasons of deferring up to 25 percent payment of exporters refunds under FASTER. 'The Automated Refund System should point out the reason as to why it is not making full payment and deferring 10 to 25 percent payment of the exporters while their documents are complete.'
He urged the Federal Board of Revenue that FASTER should be equipped with required software to point out the reason of rejection of exporters documents. He said that exporters are required to submit annexure-H form with sales tax return for receiving sales tax refunds into their bank accounts under the FASTER. However, a number of issues are being faced by the exporters for refunds. According to him, the FBR has made partial payments against the sales tax refund claims and exporters are unaware as to why the FBR had withheld the remaining refund amount. This situation has created unrest among member exporters. Exporters want to know why the sales tax refund payment has not been made and some part payment has been withheld without mentioning any reason. PHMA vice chairman requested for the necessary instructions for reprocess of such refund claims which were rejected due to this technical...
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