KARACHI: The Karachi Tax Bar Association (KTBA) has asked the Federal Board of Revenue (FBR) to release refunds as fast as recovery made by tax offices from taxpayers.
In a letter to the FBR chairman, the KTBA said that the commissioner is empowered to recover tax due from a taxpayer under various modes including attachment and sale of property, seizure of bank accounts, imposition of penalties, additional taxes, rights to arrest of the taxpayer and taxpayer detention in prison etc. “On the contrary, the mechanism of obtaining refunds of excess tax paid is not adequately taken care of,” the KTBA said.
The taxpayer is required to deposit tax demand within 30 days of the service of the assessment order. In case, additions made by the assessing officer are deleted in appeals, the taxpayer is not provided any compensation. “This leads to a perceived unjustness where under payment is aggressively pursued but the interest of the taxpayers are not adequately accommodated,” it added.
Ease in obtaining refunds would assist in combating the negative perception of the taxpayers towards the tax authorities and the number of taxpayers would substantially increase.
