FBR chief vows to clear up to Rs1m refund claims by July 15
Assures businessmen FBR will not pay surprise visits to their premises
PHOTO: AFP
MULTAN:
All income and sales tax refunds of up to Rs1 million would be released by July 15 whereas refunds of larger amounts would be cleared on August 14 and 15, announced Federal Board of Revenue (FBR) Chairman Dr Muhammad Irshad.
A delay in release of refunds has been a major bone of contention between the government and private sector, particularly the export sector, as withholding tax has been increased to ensure tax compliance and documentation of economy. “The government is fully aware of the problems faced by the manufacturers and exporters due to cash flow difficulties and their grievances will be addressed on a priority basis,” Irshad said while addressing members of the Multan Chamber of Commerce and Industry (MCCI).
He revealed that the government had planned to make payments to exporters and manufacturers through bonds, but it could not press ahead with the proposal. He ruled out the re-introduction of the Universal Self-Assessment Scheme, saying traders had harmed confidence of the government in the past.
He, however, assured businessmen that the FBR would not pay surprise visits to their premises as he wanted to establish friendly relations with the business community. “The businessmen concerned will be informed well before time,” he said.
Irshad said the corporate tax rate was being reduced by 1% annually since the current government came to power and the number of tax return filers had jumped to 1.4 million from 0.7 million.
Tax refunds amounting to Rs57 billion had already been released whereas issues related to the remaining claims would be resolved soon. “No tax is being levied on the input of goods in the zero-rated regime,” he said.
MCCI President Khawaja Jalaluddin Roomi, while speaking on the occasion, highlighted the areas where the trade and industry expected relief from the FBR.
He said policies should be aimed at widening the tax net rather than increasing the burden on those already taxed.
“There is a strong need for long-term planning and consistency in policies,” he stressed, adding tax returns and other documentation modalities were being modified each year, which created confusion.
He pointed out that increasing tax revenues and decreasing number of tax return filers was a proof that the government was putting additional burden on the existing taxpayers, adding the industry’s share of 76% in tax revenues was eroding its competitive edge.
Published in The Express Tribune, June 21st, 2017.
All income and sales tax refunds of up to Rs1 million would be released by July 15 whereas refunds of larger amounts would be cleared on August 14 and 15, announced Federal Board of Revenue (FBR) Chairman Dr Muhammad Irshad.
A delay in release of refunds has been a major bone of contention between the government and private sector, particularly the export sector, as withholding tax has been increased to ensure tax compliance and documentation of economy. “The government is fully aware of the problems faced by the manufacturers and exporters due to cash flow difficulties and their grievances will be addressed on a priority basis,” Irshad said while addressing members of the Multan Chamber of Commerce and Industry (MCCI).
He revealed that the government had planned to make payments to exporters and manufacturers through bonds, but it could not press ahead with the proposal. He ruled out the re-introduction of the Universal Self-Assessment Scheme, saying traders had harmed confidence of the government in the past.
He, however, assured businessmen that the FBR would not pay surprise visits to their premises as he wanted to establish friendly relations with the business community. “The businessmen concerned will be informed well before time,” he said.
Irshad said the corporate tax rate was being reduced by 1% annually since the current government came to power and the number of tax return filers had jumped to 1.4 million from 0.7 million.
Tax refunds amounting to Rs57 billion had already been released whereas issues related to the remaining claims would be resolved soon. “No tax is being levied on the input of goods in the zero-rated regime,” he said.
MCCI President Khawaja Jalaluddin Roomi, while speaking on the occasion, highlighted the areas where the trade and industry expected relief from the FBR.
He said policies should be aimed at widening the tax net rather than increasing the burden on those already taxed.
“There is a strong need for long-term planning and consistency in policies,” he stressed, adding tax returns and other documentation modalities were being modified each year, which created confusion.
He pointed out that increasing tax revenues and decreasing number of tax return filers was a proof that the government was putting additional burden on the existing taxpayers, adding the industry’s share of 76% in tax revenues was eroding its competitive edge.
Published in The Express Tribune, June 21st, 2017.