Sales Tax Refund Payment against RPOs issued up to 31st August, 2017

Islamabad: (October 31, 2017) FBR has asked State Bank of Pakistan for payment of Rs. 12.5 billion refund against 3,261 RPOs issued up to 31st August, 2017, through direct electronic credit to the claimants’ account. The amount shall be so credited within 24 hours.

It may be recalled that in a meeting with Chairman and senior officials of FBR in Finance Division on 26th October, Finance Minister, Senator Mohammad Ishaq Dar had issued directives for payment of sales tax refunds by 31st October, 2017, against RPOs issued up to 31st August, 2017. The directives were aimed at facilitating the business and resolving the liquidity problem faced by refund claimants particularly exporters. So, in line with the Minister’s instructions, needful has been done.

It is added that the government has been able to contain the problem of refund pendency despite the increase in taxpayer population and increase in tax payments. FBR has been trying to facilitate the businessmen so that they are encouraged to pay their taxes. These refunds are being paid to all segments and sectors of registered persons including exporters, textile, etc.

 With the aforesaid payment, FBR has paid sales tax refunds amounting to Rs. 40 billion during the first four months of the current financial year, which is unprecedented. This step will substantially  reduce the pendency of sales tax refunds.