Karachi, January 29, 2024 – The Salt Manufacturers Association of Pakistan (SMAP) has expressed deep concern over the exclusion of the salt industry from the automatic Faster System for sales tax refunds, resulting in a financial deadlock for several months.
SMAP’s Acting Chairman, Qasim Yaqoob Paracha, has called on the government to rectify this situation urgently by including the salt industry in the Faster System, a privilege currently extended to five other export sectors.
In an appeal to the authorities, Paracha highlighted the abrupt discontinuation of sales tax refund claims from the salt industry through the Faster System since August 2023. The system has refused to process claims, citing Rule 39B of the Sales Tax Rules. This has forced salt exporters to resort to filing claims manually, exacerbating their financial distress as payments have been pending for the past six months.
Paracha outlined the challenges faced by exporters even under the manual procedure, emphasizing that the Faster System requires an initial filing before providing a rejection message. Despite complying with these steps, exporters have not received their dues.
The SMAP Chairman criticized the discriminatory nature of limiting the automatic Faster System to only five export sectors. He argued that every export sector, including the salt industry, plays a significant role in promoting domestic exports and contributing to the economic stability of the country. Paracha urged the government to ensure equal facilities for all export sectors, emphasizing the need for a collective approach to promote exports.
Qasim Yaqoob Paracha urged the government to promptly address SMAP’s request and expedite the release of sales tax refunds that have been pending for the last six months. This swift action is critical to alleviating the capital shortage faced by salt exporters, enabling them to fulfill their export orders as promised and in a timely manner.
The exclusion of the salt industry from the Faster System has raised questions about the fairness and inclusivity of the current procedures. SMAP’s plea highlights the importance of a level playing field for all export sectors, emphasizing the need for policies that support economic growth and development across various industries. As the government considers these concerns, the timely resolution of the issue is crucial to maintaining a conducive environment for the salt industry and promoting a thriving export sector in Pakistan.
