Exporters of the textile value-added sector in Pakistan have warned of street agitations if sales tax refunds are not done on time.  Apparently sales tax, custom rebates, and DLTL claims of exporters have been held up for years. Exporters say a sum amounting to Rs 350 billion has yet to be disbursed.

They also say any further increase in sales tax on the export sector will ruin the nation’s exports. They want a speedy disbursement of all held up payments of exporters, revival of the zero rated tax regime, the no payment no refund system, and an incentive package for the export sector.

Exporters want the tax net to be broadened and to include retailers, shopkeepers and many others who earn huge amounts of money but pay no taxes. They say the aim should be to work toward revenue generation than to punish and penalise already registered taxpayers like exporters who already pay taxes at all levels.

On September 11, 2015, the prime minister had committed to announcing an incentive package for exporters in his meeting with them in Islamabad.

Finance minister Ishaq Dar, in his budget speech 2015-2016 at the National Assembly, had promised disbursing the export oriented sectors’ refunds till the May 31, 2015 period, by August 31, 2015.