Finance
Minister, Senator Mohammad Ishaq Dar at a meeting held in Ministry of
Finance on Thursday directed Federal Board of
Revenue (FBR) to issue sales tax refunds by 31st October, 2017,
against Refund Payment Orders (RPO) issued up to 31st August,
2017.
Chairman,
Federal Board of Revenue and senior officials of Ministry of Finance were
present in the meeting.
The decision
aims at facilitating trade, particularly exporters. A refund of Rs. 13 billion
is involved in more than 4000 RPOs. Finance Minister said that the government
is mindful of the problems being faced by the business and traders community on
account of liquidity and keeping this fact in view he has given instructions
for refunds.
It
may be added that the government has been able to contain the problem of refund
pendency despite the increase in tax payers number and increase in tax
payments. FBR has been trying to facilitate the businessmen so that they are
encouraged to pay their taxes.
The refunds
shall be paid to all segments and sectors of registered persons including
exporters, textile, etc. It may further be mentioned that as per practice
adopted previously, all refund amounts shall be electronically transferred to
claimants’ bank accounts through the State Bank of Pakistan. This
measure, he said, is aimed at enhancing transparency and facilitation and
reducing contact between tax collectors and the taxpayers.
FBR has
already paid sales tax refunds amounting to Rs. 27.6 billion during the current
financial year. These payments were made in pursuance of the announcement by
the Finance Minister in the budget speech for the year 2017-18 that taxpayers’
long outstanding demand for payment of refunds will be soon addressed and the
sales tax refunds against refund payment orders (RPOs) issued up to 30th April,
2017, shall be paid in two stages. Accordingly, payments against RPOs involving
amount up to Rs. 1 million were made on 15th July, 2017, and
for RPOs exceeding Rs. 1 million, the payments were made on 8th August,
2017.
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