Govt releases tax refunds worth over Rs 23 billion

ISLAMABAD: The Federal Board of Revenue (FBR) has released refunds of sales and income tax worth over Rs23 billion.

The FBR has released refunds under new Fully Automated Sales Tax e-Refund (FASTER) system.

The decision was taken by the government in order to provide liquidity support to businesses and promote economic activities in the country, a FBR statement said.

The government has decided to issue verified sales tax claims refunds of Rs22 billion, the FBR said.

Moreover, verified income tax refunds of Rs1.7 billion (each case up to Rs100,000) have also been released for the taxpayers, the FBR said.

The government also plans to issue outstanding verified refunds between Rs100,000 to 500,000 in the next month, the statement added.

Adviser to the Prime Minister on Finance and Economic Affairs Dr Abdul Hafeez Shaikh had announced on Monday that the government has taken decision on release of tax refunds.

Shaikh said Rs22 billion worth of verified sales tax refunds for all years will be released immediately.

Moreover, Rs1.7 billion worth of income tax refunds (up to Rs 1 Lac) for all years will also be released immediately, he said.

The PM aide said the verification process for other outstanding refunds will be expedited.

Income tax refunds between Rs1 billion to Rs 5billion for all years will be paid next month, he added.