In a meeting with FBR
management held in the Finance Division on 26th October, the
Minister for Finance and Revenue Senator Mohammad Ishaq Dar had issued
directives for payment of sales tax refunds by 31st October,
2017, against RPOs issued up to 31st August, 2017. The
directives were aimed at facilitating the business and resolving the liquidity
problem faced by refund claimants particularly exporters.
Accordingly, FBR
has advised State Bank of Pakistan for payment of Rs. 12.5 billion refund
against 3,261 RPOs issued up to 31st August, 2017, through
direct electronic credit to the claimants’ account. The amount shall be so
credited within 24 hours.
It is added that the government has been able to contain the
problem of refund pendency despite the increase in taxpayer population and
increase in tax payments. FBR has been trying to facilitate the businessmen so
that they are encouraged to pay their taxes. These refunds are being paid to
all segments and sectors of registered persons including exporters, textile,
etc.
With
the aforesaid payment, FBR has paid sales tax refunds amounting to Rs. 40
billion during the first four months of the current financial year, which is
unprecedented. This step will substantially reduce the pendency of sales tax
refunds.
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