FBR forms panel to expedite release of stalled sales tax refunds
Business
Another committee to look into customs-related issues
KARACHI (Web Desk) – Federal Board of Revenue (FBR) Chairman Malik Amjed Zubair has formed a six-member committee – with an equal representation of official and the Karachi Chamber of Commerce and Industry (KCCI) members – to discuss taxation issues and review policy changes wherever required every month.
However, its main focus would be expediting deferred cases of sales tax refund claims, as Tiwana – during a visit to the KCCI – the refund payment orders against all refund claims till July 10 had already been issued whereas the deferred refund claims of over Rs100 billion would be reviewed by the joint committee to expedite the process.
He said refund claims of Rs1bn were generated every day under the automated system but the process was delayed due to some system malfunctioning.
A press release issued by the KCCI says the FBR chairman there was no human involvement at any stage in processing refund claims but the matter was forwarded to field formations, when the system deferred any refund claim, which sought necessary documentation to finalise the precise amount of refund claims.
Tiwana said the FBR had declared 2023 as the year of ‘Sales Tax Fraud Detection’ and action had been initiated against the absconders taking money from manufacturers against supplies but had not submitted their outstanding taxes.
He also established another committee to address the customs-related issues, especially the revision of fixed rebate rates.
The FBR chairman said there was no provision for Drawback of Local Taxes and Levies (DLTL) in the budget 2023-24, but the FBR would look into the possibility of arranging funds for DLTL by making adjustments in other heads to reduce taxpayers’ liquidity problem to some extent.
Speaking on the occasion, a leading businessman suggested adjusting the pending refund claims against government levies like customs duties, sales tax, income tax and withholding tax.
