FBR directed to issue sales tax refunds by October 31

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ISLAMABAD, Oct 26 (APP):Finance Minister, Senator Ishaq Dar Thursday directed the Federal Board of
Revenue (FBR) to issue sales tax refunds by October 31, 2017 against Refund
Payment Orders (RPO) issued up to August 31, 2017.
Chairing a meeting held in Ministry of Finance, Ishaq Dar said the government was
mindful of the problems being faced by the business and traders community on
account of liquidity and keeping this fact in view he had given instructions
for refunds.
Chairman, Federal Board of Revenue and senior
officials of the ministry of finance were present in the meeting.
The decision to give tax refunds aimed at facilitating trade, particularly
exporters, said a press statement issued by the ministry adding that a refund
of Rs13 billion was involved in more than 4000 RPOs.
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 hads been trying to facilitate the businessmen
so that they are encouraged to pay their taxes.
The refunds would be paid to all segments and sectors of registered persons
including exporters, textile, etc.
As per practice adopted previously, all refund amounts would be electronically transferred to claimants’ bank accounts through the State Bank of Pakistan, it said adding that this measure, he said, is aimed
at enhancing transparency and facilitation and reducing contact between tax
collectors and the taxpayers.
FBR had already paid sales tax refunds amounting to Rs27.6 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 April 30, 2017, would be paid in two stages.
Accordingly, payments against RPOs involving amount up to Rs1 million were made on July 15th, 2017, and for RPOs exceeding Rs1 million, the payments were made on August 8, 2017.