Dar asks FBR to issue sales tax refunds by 31st

Dar asks FBR to issue sales tax refunds by 31st

Islamabad :Finance Minister Ishaq Dar on Thursday directed the FBR to issue sales tax refunds by October 31, 2017, against Refund Payment Orders (RPOs) issued up to August 31, 2017. 

The federal minister for finance chaired a meeting here in which the Federal Board of Revenue chairman and senior officials of the Ministry of Finance were present.  The decision aims at facilitating trade, particularly exporters. A refund of Rs13 billion is involved in more than 4,000 RPOs. 

The 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. The 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 and textile. 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. The FBR has 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, shall be paid in two stages. 

Accordingly, payments against RPOs involving amount up to Rs1 million were made on July 15, 2017, and for RPOs exceeding Rs1 million, the payments were made on August 8, 2017. 

Article source: https://www.thenews.com.pk/print/240209-Dar-asks-FBR-to-issue-sales-tax-refunds-by-31st