FBR to release Rs5m in refunds next week
Plans to issue up to Rs50m in next phase to help businesses cope with virus
Representational image. PHOTO: REUTERS
KARACHI:
The Federal Board of Revenue (FBR) is working to release income tax refunds of up to Rs5 million to businessmen next week and plans to release such refunds of up to Rs50 million in the next phase to help businesses cope with the coronavirus pandemic.
“Adviser to the Prime Minister of Pakistan on Finance and Revenue Dr Abdul Hafeez Shaikh has directed to release income tax refunds of up to Rs50 million in phases,” FBR Spokesperson Dr Hamid Ateeq said while talking to The Express Tribune.
The tax authority would release the refunds to everyone but in phases. The refunds would be made in ascending order, meaning starting from the smallest amount to the largest one. “Majority of the businessmen are expected to receive the refunds of small amounts,” he added.
The revenue board is aimed at releasing refunds of up to Rs5 million (cumulative refunds for five years) in the current phase. “We are aimed at releasing the refunds (of up to Rs5 million) over the next two to three days. However, only 15% businessmen out of around 97,000 refunds recipients have so far provided the required IBAN bank account numbers,” he stated.
FBR has required the IBANs to make online transfers, as it does not want businessmen to physically visit FBR offices to receive the refunds’ cheque. Online transfers would mitigate the risk of the Covid-19 spread.
In the next phase, the revenue board would release up to Rs50 million, however, timelines for release of further refunds to be made in the next phases are yet to be finalised.
Earlier, Prime Minister Imran Khan allocated Rs100 billion for tax refunds to businessmen. The allocation was part of his government’s relief package worth Rs1.2 trillion to enable people and businesses to cope with the pandemic.
“Refunds up to Rs5 million (cumulative) have been issued in Iris (FBR web portal) in respect of all cases whose soft copy was sent to the Board (FBR) in Excel sheet and a hard copy was also forwarded,” FBR said in a letter to all chief commissioners of Inland Revenue (IR) earlier this week.
Businessmen’s concern
The business community, however, showed serious concern over limiting the refunds up to Rs5 million.
“It is most unfortunate and disappointing to know that FBR has put a ceiling of Rs5 million (cumulative of five years). This has closed the access to even those business entities, which have accumulated tax refunds of even one rupee more than Rs5 million in five years; from 2014-15 to 2018-19 income tax refunds,” Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar said in a letter to Shaikh and FBR Chairperson Nausheen Javaid Amjad.
Published in The Express Tribune, June 7th, 2020.
The Federal Board of Revenue (FBR) is working to release income tax refunds of up to Rs5 million to businessmen next week and plans to release such refunds of up to Rs50 million in the next phase to help businesses cope with the coronavirus pandemic.
“Adviser to the Prime Minister of Pakistan on Finance and Revenue Dr Abdul Hafeez Shaikh has directed to release income tax refunds of up to Rs50 million in phases,” FBR Spokesperson Dr Hamid Ateeq said while talking to The Express Tribune.
The tax authority would release the refunds to everyone but in phases. The refunds would be made in ascending order, meaning starting from the smallest amount to the largest one. “Majority of the businessmen are expected to receive the refunds of small amounts,” he added.
The revenue board is aimed at releasing refunds of up to Rs5 million (cumulative refunds for five years) in the current phase. “We are aimed at releasing the refunds (of up to Rs5 million) over the next two to three days. However, only 15% businessmen out of around 97,000 refunds recipients have so far provided the required IBAN bank account numbers,” he stated.
FBR has required the IBANs to make online transfers, as it does not want businessmen to physically visit FBR offices to receive the refunds’ cheque. Online transfers would mitigate the risk of the Covid-19 spread.
In the next phase, the revenue board would release up to Rs50 million, however, timelines for release of further refunds to be made in the next phases are yet to be finalised.
Earlier, Prime Minister Imran Khan allocated Rs100 billion for tax refunds to businessmen. The allocation was part of his government’s relief package worth Rs1.2 trillion to enable people and businesses to cope with the pandemic.
“Refunds up to Rs5 million (cumulative) have been issued in Iris (FBR web portal) in respect of all cases whose soft copy was sent to the Board (FBR) in Excel sheet and a hard copy was also forwarded,” FBR said in a letter to all chief commissioners of Inland Revenue (IR) earlier this week.
Businessmen’s concern
The business community, however, showed serious concern over limiting the refunds up to Rs5 million.
“It is most unfortunate and disappointing to know that FBR has put a ceiling of Rs5 million (cumulative of five years). This has closed the access to even those business entities, which have accumulated tax refunds of even one rupee more than Rs5 million in five years; from 2014-15 to 2018-19 income tax refunds,” Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar said in a letter to Shaikh and FBR Chairperson Nausheen Javaid Amjad.
Published in The Express Tribune, June 7th, 2020.