FBR directed to clear Rs50m tax refunds
FASTER was upgraded to process claims with no export to generate Re1 RPO to allow carry forward of inputs to next month. PHOTO: FILE
Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has directed the Federal Board of Revenue (FBR) to clear all income tax refund claims of up to Rs50 million in the next couple of weeks while a clear road map and strategy may be adopted for the release of remaining refunds.
“The government has a clear policy that all tax refunds, whether fresh or old, should be paid back without any excuse,” he said while chairing a meeting at the Finance Division.
Shaikh told the meeting that the government last year released tax refunds to the tune of Rs140 billion, nearly double the amount released in FY19. Similarly, the government had also started payment of income tax refunds, beginning with clearance of refunds of up to Rs18 million in the first phase.
He said income tax refunds of Rs50 million would be cleared in the next phase, which would be completed within the next two weeks and a total of Rs40 billion would be spent to pay off all income tax refunds of Rs50 million.
The meeting also discussed issues pertaining to the allocation of power and gas subsidy to major zero-rated and export sectors and decided to convene another meeting to build consensus on using the Rs20 billion kept for the energy subsidy.
Published in The Express Tribune, July 17th, 2020.
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