Limiting refunds payment slammed

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious concerns over the Federal Board of Revenue decision regarding limiting the release of income tax refunds to Rs5 million, a statement said on Friday.

FPCCI President Mian Anjum Nisar appreciated Adviser to ther Prime Minister on Finance Dr Abdul Hafeez Shaikh, and said he had already given instructions to release income tax refunds, which he informed during the video conferencing meeting on the budget with FPCCI.

The promised position to release the income refunds given by the adviser was a sigh of relief towards the expected revival of the economy, which is registering negative growth post-COVID-19.

The apex body also would like to say, the income tax refund dues to be released will partly offset the adverse impacts on the economy.

But it is most unfortunate and disappointing to know that the FBR has put a ceiling of Rs5 million (cumulative of 5 years)., Nisar said, adding that this has closed the access to even those business entities, which have cumulated tax refunds of even one rupee more than Rs5 million in five years from 2014/15 to 2018/19.

Nisar said that the ceiling instructions is discriminatory and asked the Finance Ministry to instruct for releasing of at least Rs5 million income tax refunds to all businessmen regardless of level of their income tax refunds accumulation in the last five years.

The apex body is of the view that the Ministry of Finance should also consider releasing half of the accumulated income tax refunds to help in economic revival exercise undertaken by the government, he added.