In Pakistan, FBR chief orders payment of Rs126 billion in refunds — Dawn
In Pakistan, the Federal Board of Revenue (FBR) is to pay businesses Rs83 billion in sales tax refunds and Rs43 billion in duty rebates. As Dawn reports, this was stated by Saqib Fayyaz Magoon, senior vice president of the Federation of Pakistan Chambers of Commerce and Industry, after a meeting with FBR Chairman Rashid Mahmood Langrial.
Payments within two to three months
According to Magoon, current and deferred tax refunds were discussed at the meeting. A decision had previously been made to pay deferred refunds within one to two months. The federation representative also raised the issue of old outstanding amounts.
Magoon said that unpaid sales tax refunds amount to approximately Rs83 billion, while duty rebates total Rs43 billion. According to him, the FBR chairman instructed that these payments be made within two to three months. The meeting in Karachi took place as part of the prime minister's instruction to hold monthly consultations with the city's business community during the first week of each month.
More current news is available on the UA.News Telegram channel Telegram.
Export and import issues
The parties also discussed the implementation of the Export Facilitation Scheme (EFS). Magoon noted that exporters had faced difficulties due to higher valuation rates for raw materials imported under the scheme. The requirement for 10 percent value addition, he said, applies to exports of finished products rather than imports of industrial raw materials.
According to the FPCCI representative, exports will no longer be halted solely because the required value addition is not reflected in the finished product. Goods declarations will be allowed to be filed for export, while data on value addition, total costs and product valuation will be checked later.
Magoon also said that the FBR had in principle agreed to verify the bank condition for identification of funds at the goods release stage rather than when the goods declaration is filed in advance. According to him, possible amendments to State Bank rules will also be considered. In addition, the FBR chairman, Magoon said, reduced the time for resolving goods classification disputes from 120 to 90 days. Registration of low-risk sales tax payers is planned to be completed within a week.
