Pakistan Textile Export Association (PTEA) Chairman Khurram Mukhtar said that due to the delay in payment of tax refunds, industrialists are facing severe liquidity issues that are causing a slowdown in their production processes.
Speaking to the National Assembly Standing Committee on Finance and Revenue, he said that due to the outbreak of coronavirus in China, international investors are turning towards Pakistan in the fetch of orders from the textile industry. He grieved “This opportunity could be lost because, without liquidity, industrialists will not be able to secure additional orders.”
Federal Board of Revenue (FBR) acting chairperson Nousheen Javed Amjad informed the meeting that the board was already intended to ensure the timely payment of tax refunds. She said, “a major portion of refund claims got rejected due to fake claims or due to wrongly filed returns.” The refund system is running completely on an automated mechanism; hence it does not accept the claims containing flaws or technical fault”, she added.
The committee directed the business community and FBR to conduct a joint meeting to resolve their issues. Committee Chairman Faizullah advised the Federal Board of Revenue to resolve the issues by 12 February.