The Federal Board of Revenue (FBR) on Thursday issued a cash amount of 30 billion refundable to a total of 554 exporters after the cancellation of bonds issued, the FBR’s Member Inland Revenue Policy Dr Hamid Ateeq Sarwar confirmed.
The government had issued bonds of worth Rs30 billion to exporters a few months back but the exporters were facing difficulties because these bonds were not tradable, causing problems for exporters. The exporters had demanded of the government to cancel the bonds and provide them a cash amount of Rs30 billion. The FBR high-ups confirmed that the cash amount was released on Thursday to hundreds of exporters that will help them overcome their liquidity crunch.
The government has taken this step to solve the problem of the liquidity crunch being faced by the exporters. Exports are only beginning to grow as export earnings have increased by almost 10% in recent months, after stagnant growth in recent years.
Earlier on Wednesday, Adviser to the Prime Minister on Finance, Revenue Dr Abdul Hafeez Shaikh met a group of leading businessmen representing various export sectors contributing nearly $2 billion exports, to discuss and review progress on the issues pertaining to payment of Sales Tax refunds to exporters. During the meeting, various proposals were put forward by the businessmen and exporters and the FBR was advised to work more aggressively on reforming and simplifying the processes through automation for early and prompt payment of sales tax refunds.
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