Textile sector's refund claims of Rs6400mn to be settled
19 May '06
2 min read
Federal collectorates were directed by Ministry of Finance to dispose of pending refund claims in textile sector which amounted to Rs6400 million.
Government reduced sales tax to zero rate in budget 2005-06 on import and supply of fabrics and cloth but textile sector was facing problem as Central Board of Revenue (CBR) had failed to clear their pending cases so far, sources informed.
They said that Government was charging 3 percent retail tax including one percent income tax in textile sector.
About 8195 refund claims are pending with CBR for textile sector involving Rs6400 million.
Government had removed sales tax on import and supply of fabrics in the budget 2005-06 and a nominal 3 percent retail tax was imposed on clothes.
Despite this, people face issue of refund claims due to negligence of CBR.
CBR paid Rs30 billion as income tax refunds till June 30, 2005 compared to Rs20 billion last year and dished out Rs55 billion as sales tax refunds last year, compared to Rs50 billion paid a year earlier.
Income tax refund claims numbering around 22,622 were pending with Central Board of Revenue (CBR) at the end of first half (July-December period) of current fiscal year involving Rs26.952 billion.
As on July 1, 2005 about 58,902 refund claims were pending amounting to Rs33.326 billion.
During past six months (July-December), 119,886 fresh claims were filed involving an amount of Rs16.38 billion.
Till December 31, 2005, claims numbering 156,066 were either disposed of through refunds or cancelled, leaving 22,622 cases pending involving an amount of Rs26.952 billion.
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