FBR sets up body to resolve tax refunds issues

KARACHI: The Federal Board of Revenue (FBR) on Wednesday constituted a committee to resolve issues related to sales tax refunds that remain unsettled due to incomplete documentation.

The committee comprises tax officials and businessmen to resolve the matters in Sindh. Ikhtiar Baig, former senior vice president of Federation of Pakistan Chambers of Commerce and Industry has been nominated as convener of the committee. Abdul Hameed Memon, chief commissioner of Inland Revenue will represent the FBR. Other committee members include Karachi Chamber of Commerce and Industry President, former chairman of All Pakistan Textile Mills Association and others.

Under the terms of reference, the committee will review the nature of complaints/issues, possible solutions and take immediate action for resolution. Further, the committee will follow up the complaints till the issue is resolved.

The committee is required to share records of complains, resolved and pending cases with the FBR headquarter on monthly basis. Baig said the taxpayers are facing difficulties in obtaining sales tax refunds despite an online mechanism introduced by the FBR. Taxpayers received billions of sales tax under the Fully Automated Sales Tax e-Refund (Faster) system on the basis of verified claims. “In most of the cases where claims are verified the refunds are released. “But in cases where taxpayers fail to provide evidence their genuine claims their refunds are deferred,” he added. “Once the claims are deferred the taxpayers run pillar to post for rectification.”