All Pakistan Textile Mills Association (APTMA) has raised serious concerns regarding the delays by the new Fully Automated Sales Tax e-Refund (FASTER) System. Dr Amanullah Kassim Machiyara, Chairman APTMA while addressing a press conference urged the government to restore zero-rated regime for textile sector as it has failed to honour its commitment to pay fast-track refunds.
“Exporters are disappointed over the performance of the Federal Board of Revenue’s new Fully Automated Sales Tax e-Refund (FASTER) System as the commitment of the FBR to instantly release exporters’ refund claims has not been fulfilled,”
Despite the FBR commitment that sales tax refunds will be paid within 72 hours of submission of claims, billions of rupees of exporters are stuck on account of sales tax refunds.
“In this situation, the best option to support the export-oriented industry is to restore the zero-rated regime and impose sales tax on local sales. Otherwise the exporters will not be able to deposit sales tax aims at ensuring timely payments to their workers,”
Exporters are facing financial hardships due to delay in refund payments and are unable to procure raw materials for manufacturing of goods meant for exports.