Auto parts makers demand tax refund

The Federal Board of Revenue (FBR) and its sub-organs are creating hurdles and using delaying tactics in clearing billions of rupees worth of sales tax refunds of the tractor industry despite assurances by the Ministry of Industries and FBR officials, alleged an auto industry body.

According to a statement issued on Monday, a delegation of the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) called on Federal Minister of Industries and Production Khusro Bakhtiar and Industries and Production Secretary Hamid Ateeq Sarwar to seek support.

The delegation apprised the ministry that tractor manufacturers and their vendors were inter-connected and if more than Rs6 billion in sales tax refunds, held for the last 18 months, were not released immediately, the circular effect would hurt everyone, including the auto parts vendors.

The delegation was assured of immediate release of tax refunds that had been outstanding for a long time. The ministry saw no legal or administrative hurdle in the way of release of the refunds.

In another meeting with FBR Chief Operations and Refunds Officer Muhammad Abu Bakar Siddique, the Paapam delegation was told that the FBR also saw no reason for halting the release of refunds.

Published in The Express Tribune, August 10^th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.