Delay in tax refund worries importers
Karachi: Textile exporters are perturbed over excessive delays in GST refunds which have been continuously causing liquidity problems for them from July 2019 when 17% GST was imposed by the government in the previous budget despite stiff resistance from 5 zero-rated export sectors.
In view of ill experience during FY 2019-2020, textile exporters are worried and upset as to how the government will keep its commitment for timely refunds during FY 2020-21, says a release here Saturday.
Chaudhry Salamat Ali, Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) said that the sense of discontentment is prevailing in the textile industry and exporters are facing extreme unrest and anxiety as the government has completely disregarded the major demands and recommendations of the export sectors of Pakistan which were proposed by the textile associations and leading chambers of Pakistan which is unreasonable and deplorable.
As per the past practice, PHMA had given its suggestions for the Federal Budget 2020-21, however, to its utmost surprise, the government had neither consulted for budget discussion meeting nor their proposals major proposals incorporated in the budget. “It is highly unethical and inappropriate that first time in the history of country, stakeholders were totally ignored for consultation twice: before and after the Budget. The textile export sector is the backbone of the economy and exports, most labour-intensive sector, also provides huge urban employment to female workers and particularly to the lower class in the garment units and highest foreign exchange earner is beyond the understanding.” - PPI