The All Pakistan Textile Mills Association, better known as APTMA, has urged the Government of Pakistan to clear more than Rs. 100 billion in the long-pending sales tax refund that has led to major liquidity crunch for garment manufacturers and exporters.
The Chairman also appealed to the Federal Board of Revenue to instruct all tax collection offices to speed up the processing of refunds. “The banks are apprehensive in revising credit limits of companies as per the increased cotton rates,” further substantiated Ali Ahsan.
Echoing APTMA’s thoughts, the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) also sought from the Government quick processing of tax refunds. The textile exporters of the country expressed their concern that the present government hasn’t released any amount so far on account of duty drawback of taxes.
It is worth noting that since December 2018, the Pakistani rupee has lost a quarter of its value against the US dollar.