The Pakistan Readymade Garments Manufacturers and Exporters Association (NZ)Chairman Sohail A. Sheikh has expressed his concern over the performance of the Federal Boardof Revenue's newly-launched Fully Automated Sales Tax e-Refund (FASTER) System as thecommitment of the government to release exporters' sales tax refunds within 72 hours has notbeen fulfilled yet, affecting SMEs severely
Lahore (Pakistan Point News / Online - 06th January, 2020) The Pakistan Readymade Garments Manufacturers and Exporters Association (NZ)Chairman Sohail A. Sheikh has expressed his concern over the performance of the Federal Boardof Revenue's newly-launched Fully Automated Sales Tax e-Refund (FASTER) System as thecommitment of the government to release exporters' sales tax refunds within 72 hours has notbeen fulfilled yet, affecting SMEs severely.
"PRGMEA welcomes Prime Minister Imran Khan's directives to the Federal board of Revenueto clear pending refunds of exporters, removing bottlenecks from the new refund paymentsystem of the FBR," he said in a statement issued here today.PRGMEA NZ chairman asked the PM to also get his directives implemented on immediate basisand in their true spirit, as the exporters especially of SME sector, are facing a severe liquiditycrunch due to delay in payment of sales tax refunds despite launch of new system by the FBR.
At a time when banks are already reluctant to finance small industrial units amidst tight monetarypolicy the exporters need more quick and speedy system of refunds payment of their ownmoney.Moreover, he added that the Small and Medium Enterprises sector in the country needs properfinancial facilitation and friendly policies' support.PRGMEA chief said that the government and the financial institutions are more inclined towardsthe large scale business set-ups and industrial units.
He said that it is evident from the economicdevelopment history of big economies around the world that the economic well-being andstrengthening has resulted from the progressive development of SME sector in their countries.Keeping eyes on the economic future and building Pakistan as a nation of prosperous anddeveloped people, the business communities, economic scholars and different forums in Pakistanhas been voicing for the SME sector development.He urged commercial banks to improve access for the SME sector that contributes heavily to thecountry's GDP, generating employment on a large scale. Despite significantly contributing to theGDP, exports and employment generation, the financing percentage of SMEs remains pathetic inthe overall financing to customers of various levels.
