Business

FBR to clear income tax refund backlog by year-end

Revenue board working on new digital system for refunds

Our Correspondent October 18, 2020

The cabinet was informed that reforms in the FBR could not be completed before December this year. PHOTO: FILE

The Federal Board of Revenue (FBR) is working to introduce a new digital system for income tax refunds, which will help clear all backlog by the end of this year, said FBR Member (Inland Revenue Operations) Dr Muhammad Ashfaq Ahmed.

“To facilitate payment of income tax refunds, a new system, similar to the automated FASTER Plus system for sales tax refunds, is being established,” he said while speaking at the Karachi Chamber of Commerce and Industry (KCCI) on Saturday.

“This way, income tax refunds can also be settled within the minimum possible time while all previous claims are being settled as soon as possible,” Ahmed said.

“As the government remains highly committed and the FBR continues to disburse refunds at a tremendous pace, the entire income tax refund backlog will be settled by the end of this year.”

He said the automated FASTER Plus system for sales tax refunds, which became operational on October 1, 2020, processed claims within 48 to 72 hours, without any human intervention, after the claimant completed the procedure required by the system.

He informed the business community that over the past six months, the FBR had released refund claims of Rs250 billion, which was unprecedented. Things were improving and the FBR was trying its best to facilitate taxpayers, he added.

“Pakistan deserves a much better public finance system, hence, efforts are under way at the FBR head office, where we are working to resolve issues being faced by taxpayers besides exploring ways and means on how to enhance the country’s tax base,” he said. He stressed the need for broadening the tax net, citing that it would ease pressure on the existing taxpayers.

Referring to the new rules announced by the FBR for video surveillance, Ahmed said they were in favour of industrialists, who would be able to avoid human intervention, which usually led to malpractices.

“Since technology is the only solution, we have decided to implement video analytics and it is heartening to see that many industries want to see the technology implemented in their business premises at the earliest,” he pointed out.

Published in The Express Tribune, October 18^th, 2020.

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