ISLAMABAD: Finance Minister Ishaq Dar has directed 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. The FBR chairman and senior officials of the 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 4,000 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.
