Dysfunctional refund system hostile to economy: ICCI

October 31, 2015 Off By Web Desk

Islamabad: Islamabad Chamber of Commerce and Industry (ICCI) on Sunday said dysfunctional refund mechanism is threatening economic revival.

The existing refund system has not only damaged exports but also broken the back of exporters, it said.

The situation can only change if refund mechanism is fully automated eliminating the role of officials which will infuse confidence among exporters, said Atif Ikram Sheikh, President ICCI.

He said that exporters are running from pillar to post since long to get refunds but they are not being entertained while fake refunds are being processed within hours inflicting loss of billions to national exchequer.

He noted that and all the efforts to tackle the refund mafia have backfired leaving automation as the only solution to streamline export sector.

Automatic refunds would eliminate fake refund, end delay in payments, trigger exports and may help trading community, he noted.

Delay in refund payments has created liquidity problem closing many businesses while leaving others at the mercy of loan sharks, he noted. The culture of flying invoices and fake refunds must be eliminated on all cost to stop continued fall in exports.