AVN Report
FAISALABAD: Textile exporters have demanded the government to postpone the Federal Board of Revenue’s (FBR) requirement for Chief Financial Officers (CFOs) submitting affidavits, arguing that buyers don’t have direct access to the multi-tier supply chain and can only verify their suppliers’ status through the FBR’s Active Taxpayer List (ATL).
Contending that holding buyers responsible for the entire supply chain is unreasonable, they called on the government to create a business-friendly environment that encourages trade growth and, consequently, boosts tax revenues.
In a recent statement, the Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA) stressed that while the industry supports strict adherence to tax regulations and does not endorse any misconduct, a balanced approach is necessary to restore business community confidence.
The PTEA pointed out that the FBR owes businesses billions in legitimate refunds, with firms facing a financial strain of 19pc due to delayed payments.
It warned that stringent measures could worsen the challenges confronting compliant businesses, saying that recent aggressive actions by the FBR against reputable companies had caused concern among leading factories.
The association also stressed the need to strengthen the role of trade bodies and associations, advocating for their participation in Alternative Dispute Resolution (ADR) to assist the FBR in implementing tax policies.
It called for a pragmatic regulatory framework that is straightforward for businesses and supports smooth operations, besides addressing potential revenue leakages. Decisions should be guided by the principle of equity, it added.
