leather industry urges the government to expedite the refund of sales tax

The Chairman of the Pakistan Tanners Association, Mr Muhammad Mehr Ali, has urged the government to release due Sales Tax Refund Claims, which are in Million pending with the Sales Tax Collectorate payable to the Tanning Industry/Leather Sector of Pakistan, among others.

He, in a statement, also highlighted the aspects which are most significant with the burning issue for Non-Issuance of RPOs to the Leather Industry against their claims of Sales Tax Refund Claims duly automated as has been halted without assigning any compelling reasons to the Leather Industry, besides the payment has also been not yet been released against RPO’s which are already issued since for the last 3-4 Months, resultantly the Leather Industry is facing SEVERE FINANCIAL CRUNCHES with the blockage of huge refund of Sales Tax payable by the Government/FBR to the Industry.

Mr Mehr Ali also showed apprehension in a stronger mode that further delay in releasing of due refund of Sales Tax the export activities in the execution of export orders, which are in progress/pipeline, are severely jeopardised for cancellation because of blockage of Sales Tax refund to the Industry & inability of our members with pre-requisite funds for materializing/finalizing ongoing export orders for Leather.

Besides, the Chairman, PTA also highlighted that on one side, the government has already increased the Sales Tax percentage from 17% to 18% and, on the other hand, not defraying the due refund of Sales Tax to the Industry, which seems irrational completely for which PTA has already approached to Chairman, FBR, Mr Asim Ahmed to remove this financial obstacle to provide a level playing to the Industry for in time execution of export orders. Otherwise, the Industry and, ultimately country will lose the precious foreign exchange.

Mr Muhammad Mehr Ali, Chairman, PTA, invited the attention of the Government/FBR Commerce Ministry for the release of “Duty Drawback claims” to the Leather Industry, which is stagnant for the release to the Industry, which is also a setback for the Industry for the inadequacy to the members for proceeding smoothly with financial convenience.

The Chairman PTA, Mr Muhammad Mehr Ali, appealed to the Finance Minister, Mr Ishaq Dar and Chairman, FBR, for the immediate release of due Sales Tax Refund Claims & DDR to the Industry and issuance of due RPOs for the claims thru automated system and payment, which is utmost mandatory for Leather Industry as well to remove financial stringencies of our member exporters, which are severe in extreme mode being faced by our member exporters.

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