Islamabad: Federal Minister for Finance Ishaq Dar on Tuesday pushed the computer button for payment of Rs23 billion refunds related to all taxes without any human interactions and the amount would be transferred into accounts of taxpayers.
"We have cleared the backlog and fulfilled second promise with the business community for clearing their refunds dues where Refund Payment Orders (RPOs) were issued till April 30, 2017 in case of over Rs one million," Federal Minister for Finance Ishaq Dar said in a function arranged by FBR here at its headquarters for providing refunds to taxpayers on Tuesday afternoon.
He said the tax collection of FBR increased from Rs1946 billion to Rs3362 billion in last four years but the stuck up refunds amount did not increase to the same proportions. He said that the government took bold steps to eliminating tax exemptions for privileged class and brought Rs323 billion into the system.
He said that it was our target to increase tax to GDP ratio up to 15 percent as the size of the country's GDP crossed 300 billion dollar mark.
Federal Minister for Finance Senator Mohammad Ishaq Dar on Tuesday presided over a ceremony of payment of sales tax refunds at FBR. The ceremony was also attended by Zubair Tufail President FPCCI and other representatives of chambers and trade bodies. FBR Chairman, Members of FBR and other tax officers were also present.
It was announced by the Finance Minister in the budget speech for the year 2017-18 that taxpayers’ long outstanding demand for payment of refunds will be addressed soon and the sales tax refunds against refund payment orders (RPOs) issued up to 30th April, 2017, shall be paid in two stages. Firstly, payments against RPOs involving amount up to Rs1 million were to be paid by 15th July, 2017 and in the second stage refund against RPOs of amount more than Rs1 million were to be paid by 14th August, 2017.
Finance Minister Ishaq Dar said that the PML-N government has been sensitive to the issues faced by the business community arising from stuck up refunds.
The minister said that refund payments up to Rs1 million were paid on 15th July, 2017 whereas payments against RPOs exceeding Rs1 million are being issued today, well before the date earlier announced. He added that total refund including refund issued in the first phase come out to Rs26.43 billion covering 10439 RPOs.
Minister Dar said that these refund payments would not only cover exporters but all other claimants in all sectors of economy. This would resolve liquidity problems that the taxpayers are facing. He said that to fulfill the commitment FBR is forwarding electronic payment advice to State Bank of Pakistan.
It may be added that first time refund payments were made through direct electronic transfer to claimants’ bank accounts through State Bank in November 2016. Since Nov, 2016, sales tax refund has been credited directly into the account of the taxpayers within 24 hours. State Bank of Pakistan has again been directed to make arrangements in this regard so that the amount of refund should be credited directly into the account of the taxpayers within 24 hours.
The Finance Minister emphasised cordiality in FBR-Business Community relationship saying it was vital for good revenue generation, which in turn is essential for economic growth as envisaged by the present government. The minister also urged the business community to play their vital role by investing in new areas, setting up industry and paying taxes to enhancing the pace of development in the country.
The minister along with chairman FBR and other invitees pressed the button on the computer keypad marking electronic transfer of refund payments.