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EPB DG discusses ST refund with cloth exporters

RECORDER REPORT

FAISALABAD: The federal government would be pursuaded to implement the already decided time-bound refund of sales tax system to facilitate the refund claims of exporters.

This was stated by Mohammad Siddique Alvi, Director General, Export Promotion Bureau in a meeting with the members of All Pakistan Cloth Exporters Association (APCEA) here.

The problem of sales tax refund has assumed critical importance as huge funds of exporters were reported to be blocked under this head and the exporters were feeling difficulties in making turnover in their business because of the liquidity crunch, Alvi was apprised by the APCEA. Alvi said the government had provided mechanism of taking representatives of the exporters as well as the Export Promotion Bureau and other government departments representatives on the advisory boards of Sales Tax Department for resolving the problem of exporters. These advisory boards were already working Karachi and Lahore and similar arrangements should be made in Faisalabad.

He said in his meetings in the Export Facilitation Board he would be taking up this important problem of exporters with higher authorities.

Regarding Export Refinance Part-I problem pointed out by Mian Naeem Omer, chairman, APCEA, the GEPB DG said the State Bank governor had assured that the refinance facility would be provided not only to direct exporters but also indirect exporters, who were making supplies to the direct exporters so that the canvas of refinance could be broadened and maximum facilities could be made available. However, the exporters particularly small and medium sectors exporters were unable to avail the facility become of procedural complications and wanted the old refinance scheme part-I, to be restored, he would be recommending the State Bank authorities to review their decision and restore the Export Refinance Part-I scheme, he stated.

Regarding problems faced by exporters in getting their export licences and visas from the EPB the Director General asked the director, EPB Faisalabad, to look into the grievances of the exporters. He said shortage of staff at local office was being taken cognisance of and computer staff was being enhanced to cope with the growing volume of processing documentation. He said the functioning of the visa issuing section at the local office would be further improved and the exporters would not be feeling any delay or hurdles in the issuance of export licences, he said.

Earlier, the APCEA chairman pointed out that the exporters were feeling difficulties in getting their sales tax refund as well as in obtaining the Export Refinance Part-I facility from the State Bank. He also apprised the EPB DG of the procedural difficulties and delays being confronted by the local EPB office because of shortage of computer and other staff.