Garments industry for stopping audit notices

Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has asked the Federal Board of Revenue (FBR) to help strengthen the industry and exporters by timely releasing sales tax refunds, instead of sending them audit notices. In a statement, the association pointed out that more than 51% of tax revenue was being collected from the manufacturing sector, though its share in gross domestic product (GDP) was just 13%. On the other hand, it said, the agricultural sector, which constituted more than 26% of GDP, was not fulfilling its national obligation and was paying just 2% of income tax. PRGMEA Central Chairman Mubashar Naseer Butt underscored the need for widening the tax base and bringing the agricultural sector to the tax net. “The FBR, instead of facilitating the industry, creates problems for the manufacturers and exporters,” he said, adding that tax collectors had started sending audit notices to the exporters, though they were required to swiftly release tax refunds.