Lahore, March 14, 2014 (PPI-OT): The Lahore Chamber of commerce and Industry on Friday appreciated Finance Minister Ishaq Dar for directing the Federal Board of Revenue (FBR) to pay outstanding Sales Tax Refunds up to Rs 0.5 million in three weeks and Rs 1 million up Apri 15, 2014.
In a statement issued here, the LCCI President Engineer Sohail Lashari said that the decision to clear the Sales Tax Refunds backlog would facilitate the exporters who were feeling distressed after losing money on export proceeds due to appreciation of rupee.
The LCCI President said that it was a long standing demand of the Lahore Chamber of Commerce and Industry that the huge refunds backlog should be cleared as the blockage of working capital had impacted the ability of the businessmen to expand their businesses.
Engineer Sohail Lashari said that if the Federal Board of Revenue was given fresh instructions to make the refunds within a month of execution of export orders, the exports would register phenomenal increase.
He said that the decision that would benefit 26000 claimants out of total 36000 refund cases would help expedite economic activities in the country besides raising the confidence of the businessmen in government.
The LCCI President said that the private sector do understand that the government at the moment is facing liquidity crunch and was not able to payback large claimants therefore, it is requested that these claimants should be paid their dues in installments to enable them to reinvest in businesses.
He said that since the markup rate is high and the business community is hardly availing any loans from the banking channels therefore, the decision to give refunds would help businesses flourish.
The LCCI President said that the Lahore Chamber of Commerce and Industry was thankful to the Finance Minister Ishaq Dar for accepting its demand and directing the tax authorities to ameliorate the problems of Small and Medium entrepreneurs.
Engineer Sohail Lashari said that after the payment of refunds, the Federal Board of Revenue would be in a position to focus on tax collection for meeting the revenue targets as it would not be left with any other big assignment but expansion in the tax net and collection from the existing tax payers.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854