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PLGMEA, CBR discuss refund issue

KARACHI: A delegation of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) led by Fawad Ijaz Khan, Chairman, PLGMEA, called on newly appointed Collector Sales Tax (Enforcement) Rashid Ahmed the other day to discuss the problems of the Association’s members regarding outstanding Sales Tax refund claims, according to a press release of the PLGMEA received here on Friday.

Other Sales Tax Collectorate and officials who attended the meeting included Additional Collectorate and Deputy Collector while PLGMEA members were Rizwan Ahmed Khan, Shahid Malik and Mohammad Arif.

Speaking on the occasion, Fawad pointed out that the members of PLGMEA were facing delays in release of refund, especially the ordinary category exporters. Several exporters had their claims deferred but the reason was not communicated to them.

In reply, Collectorate Sales Tax clarified that re-organisation and re-shuffling was taking place in the Collectorate as a result some backlog had been created in release of refunds. He said the Collectorate staff was trying its best to control the situation.

Rashid Ahmed directed the concerned staff to issue deferment memos for deferred claims. Later, PLGMEA was given the set of such memos for its members so that concerned exporters could be informed.

He also asked the concerned staff to clear the long outstanding refund claims of the Association’s members whose list was given and assured the delegation that such claims would be released as soon as possible.

Fawad inquired about the status of newly devised refund procedure STREAMS.

The Collectorate apprised the delegation that CBR was making necessary changes in the system to make the STREAMS operational. He said the main issue was electronic transfer of refund amount to exporters through centralised CBR account in Islamabad. He hoped that the new system would become operational by 1st January, 2005.

Fawad asked the Collector about the scope of newly constituted Alternate Dispute Resolution Committees.

Answering the question, Rashid Ahmed elaborated that several such committees have been formed to solve the cases of Sales Tax. He said these committees are general in nature and can handle any case pertaining to Sales Tax.

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