Pakistan textile exporters will receive tax refunds in the short term

Shahid Rashid, Pakistan’s textile ministry, assured exporters on March 22 that they will soon clear their tax refund application. He said that the textile ministry is doing its best to complete the work.

Shahideshid said that the National Bank of Pakistan (SBP) has already received a tax refund of Rs.16 crore, which is approximately 14% on a pro-rata basis. The approved amount for the 2010 budget is 7.5 billion rupees. By June 30, 2011, tax refund applications are expected to be about Rs 170 billion.

He said that after seeing the assessment data of the central bank's tax rebate application, he sent a letter to the Ministry of Finance requesting that an amount of Rs 17 billion be refunded. Therefore, before the end of this fiscal year, exporters will soon receive most of the tax refund.

He reminded that according to the textile policy, the textile export target is set at Rs 25 billion, but because only a part of the policy is implemented, this goal cannot be achieved.

He demanded that the tax refund measure be extended for three years according to the contents of the 5-year national textile policy.