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Add to CTA of Anwar

The Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has also called for abolishment of Wealth Tax which had helped create a parallel economy.

This is one of the suggestions for tax reforms presented by Prgmea central Chairman Javed Chinoy in a letter to the Chief Executive, General Pervez Musharraf. Describing the tax as inequitable because it is levied on people who have some property or asset even in the absence of any income from them, he said that the exporters of readymade apparel were perhaps the most documented sector of the economy because their revenue came through banking channels where tax was deducted.

With regard to delay in payment of sales tax refund and Customs rebate, Javed Chinoy said that there were systems and procedures which force the exporters to waste months and use much of their energy simply to get their own money back from the Central Board of Revenue. It takes exporters a month after goods have been exported to be even able to file the duty drawback claims with Customs.

He expressed surprise at the latest CBR directive that no adjustment of input tax will be allowed to exporters unless all of their payments exceeding Rs. 50,000 are not through crossed cheques. He pleaded that all of the exporters payments are made from their money which has already been fully taxed and documented. Why should a step be added which will not cause any new revenue to be documented but will simply create more hurdles for exporters, the Prgmea's chief asked.