Hafeez Shaikh directs FBR to expedite tax refund process

ISLAMABAD: Adviser to Prime Minister on Finance Abdul Hafeez Shaikh on Monday chaired a meeting on tax refund payments at the Federal Board of Revenue (FBR) headquarters, ARY NEWS reported.

The meeting attended by federal ministers and advisers on commerce, parliamentary affairs and investment, secretary finance, and others discussed refund payments in terms of income and sales taxes and federal excise duty.

Member Inland Revenue (Operations) Dr. Muhammad Ashfaq while briefing the meeting said that refund payments of Rs 142 billion under sales tax and Rs 90 billion under income tax are still pending.

“Exporters have been given refunds of Rs 106 billion on a priority basis,” he said adding that refund claims under sales tax during the ongoing year stood at Rs 154 billion.

It was suggested during the meeting to setup technical committees to address issues faced by the business community besides also ensuring timely payment of tax refunds.

It was decided to establish facilitation committees at the level of field offices as another suggestion called for forming complaint cells to facilitate the business community.

Read More: FBR to directly transfer tax refund to taxpayers’ bank accounts

The meeting expressed its concern over rising business costs due to the imposition of withholding taxes and Hafeez Shaikh directed the FBR to takes measures to bring down the withholding tax in the budget.

He also directed the FBR to issue tax refunds to the business community on an immediate basis in order to provide relief to them during coronavirus pandemic.

“FBR should release Rs50 million tax refunds in a week,” Hafeez Shaikh said as meeting also stressed upon the need of a post-refund audit to tackle flying invoices issue.