Dr. Mirza Ikhtiar Baig former SVP FPCCI & Secretary General UBG (SZ) requested FBR for restoration of zero rated sale tax regime for five export sectors from next fiscal year. Dr. Baig said that Government has abolished SRO-1125 withdrawing zero rated sale tax facility on the five export oriented sectors including textile and imposed 17% sale tax from July 2019in the last budget which was later refundable. Dr. Baig appreciated Chairperson Nausheen Amjad of FBR for the new system ‘FASTER’ of sales tax refunds with but due to some errors, delaying refunds effecting exporters liquidity who are at the verge of collapse. He said due to impact of corona virus, cancellation & holding of export orders, closure of factories under lockdown and payment to workers have seriously affected their cash flow and exporters are not in a position to pay upfront sale tax and then claim for the refund. APTMA & Pakistan Business Council (PBC) also supported revival of zero rated facility for five export sectors under SRO-1125. Dr. Baig said that restoration of zero rated sale tax facility will greatly help exporters to maintain cash flow and to revive the exports of the country already reduced 54% in April 2020 from $2 billion to $957 million which is a matter of serious concern.
