KARACHI: Federal Tax Ombudsman (FTO) Abdul Rauf Chaudhry said on Friday that the issue of zero rating for five export oriented industries would be taken up with the finance minister and chairman, Federal Board of Revenue (FBR).
The FTO observed that sales tax is imposed on local sales and not exports and if 90 per cent textile industry’s production is exported, there was no reason to impose sales tax which has to be refunded later on.
Similarly, the FTO assured that the issue of non-payment of sales tax refunds on services collected by Sindh Revenue Board (SRB) would be resolved, but it has to be refunded by FBR on making internal adjustments.
It would also be taken up with the chairman FBR Tariq Bajwa.
The FTO was responding to many of the issues raised by exporters belonging to different segments of textile industry, including knitwear, hosiery, bedwear and cotton fashion apparel.
Abdul Rauf Chaudhry admitted that outstanding rebate and refund cases are rapidly increasing with FTO offices and he would be taking up the matter with FBR chairman in a meeting expected next Tuesday.
He agreed with the exporters that even on charging nominal sales tax of two per cent on zero-rated industries, it automatically raises the requirement of submitting full accounts with all necessary details.
The FTO was critical about the working of the revenue departments and said once the FTO decision on any single case pertaining to rebate or refund is made, it should be implemented across the board and there was no need to keep hearing similar cases.
After the Refund Payment Order (RPOs) is issued by the FTO office, he said this means that the decision has been made and the department has to make payment immediately.
However, if no payment is made on getting RPOs, this means that exporter is bearing the entire cost for non-payment.
The textile being the largest industrial sector and foreign exchange earner should be allowed to work with full strength so that it could compete with Bangladesh, India and other regional countries.
The FTO felt that all irritants facing textile sector should be removed at the earliest so that country’s exports could grow or else the trade gap would further widen and put more burden on foreign exchange reserves.
Chaudhry disclosed that 80 to 90 per cent cases handled by the FTO are decided in favour of textile industry.
However, he admitted that there was an urgent need to strengthen the implementation process so that cases decided by the FTO are award at the earliest by the concerned government departments.
Since there is a big rise in cases pertaining to taxes, the FTO offices would be opened up in Peshawar and Faisalabad and if the budget allows, another office would be set up in Multan.
Similarly, he said the number of advisors in Karachi and Lahore are being doubled so that cases are processed at a faster pace.
Heads of trade bodies who attended by the meeting included Cotton and Fashion Apparels, Pakistan Sweater and Knitwear Association, Pakistan Bedwear and Pakistan Hosiery Manufacturers.
0 comments:
Post a Comment