Foreign investors turn up the heat on FBR for Rs77bn refunds

ISLAMABAD: Foreign investors have turned up the heat on the top tax authority of the country to release their long-stuck Rs77 billion worth of tax refunds, up to March 2022, as liquidity constraints were raising operational risks for them.

A demand to this effect was made by Overseas Chamber of Commerce & Industry (OICCI) on behalf of 51 foreign firms, whose tax refunds were yet to be released, in a letter written to the Federal Board of Revenue (FBR).

“We once again share an updated list of outstanding income and sales tax refunds claims of our members,” wrote OICCI chair to his FBR counterpart.

“We firmly believe that tax refunds should be an ongoing process so as to avoid liquidity issues of our members that continue to pay huge tax on their ongoing business activities.”

The letter contains the details of pending tax refunds of OICCI members as of March 2022, amounting to over Rs77 billion, including Rs43 billion Income tax and Rs34 billion sales tax outstanding refunds.

OICCI chairman called for immediate intervention to expedite the resolution of legitimate outstanding tax refund claims of the leading foreign investors in Pakistan.

He also invited the chairman FBR for a meeting with OICCI members at a mutually convenient date soon.

The claimants include Hub Power Company, K-Electric, Frieslandcampina Engro Pakistan Limited, Procter and Gamble Pakistan, Aisha Steel Mills, Standard Chartered Bank, Archroma Pakistan Ltd, Iffco Pakistan Limited, Tri-Pack Films Limited, Novartis Pharma, Dawalance Pvt Ltd, Siemens Pakistan Engg Co Limited, Shell Pakistan Ltd, Bayer Pakistan Ltd, Deutsche Bank AG, Exide Pakistan Ltd, Martin Dow Marker Ltd, Syngenta Pakistan Ltd, Indus Motors Company Limited, Sanofi Aventis Pakistan Limited, Lotte Chemical Pakistan Limited, Eni Pakistan Limited, Pakistan Oxygen Limited, Pak-Kuwait Investment Company Limited, Reckitt Benckiser Pakistan Limited, Pak -Libya Holding Company (Pvt) Ltd, Mondelez Pakistan Limited, Oxford University Press, Jubilee Life Insurance Company Ltd, Breltexco Limited, Signify Pakistan, Bank Islami, Coats Pakistan, Sicpa Ink Pakistan, Pair Investment Company, Aspin Pharma, Pakistan International Container Terminal, Siemens Healthcare Pvt Ltd, Dupont Pakistan Operation Pvt Ltd, Dubai Islamic Bank, Pakistan Telecommunication Co Limited, Pakistan Mobile Communication Limited, Telenor Pakistan, Uch-II Power Private Limited, Tetra Pack, Nestle Pakistan Limited, Coca-Cola Export Corporation, METRO Pakistan, Rousch (Pakistan) Power Limited, and Berger Paints Pakistan Limited.