FBR warns officials to speed up issuance of tax exemption papers

KARACHI: The Federal Board of Revenue (FBR) has directed Commissioners Inland Revenue to rush the issuance of exemption certificates to taxpayers as long-drawn-out delays are counterproductive to the ease of doing business, sources said.

The FBR, in an official communication sent to all field offices of Inland Revenue, stated with concern that over 56 percent of the applications for exemption certificates were pending beyond 30 days.

To facilitate the industrial and manufacturing taxpayers the government allowed concessions in payment of withholding of taxes at various stages. A commissioner IR is required to give approval to the exemption certificate in around 15 days but taxpayers are running from pillar to post to avail this facility.

The top tax authority said expeditious disposal of all kinds of applications of taxpayers was directly linked to Pakistan’s improvement on ‘Ease of Doing Business’ index.

The revenue body directed its officials to expedite the process in order to facilitate trade and industry.

The FBR said that data of exemption applications lying pending in logins of each commissioner were obtained from PRAL, which were shared with respective formations.

“The data shows that commissioners are not disposing of exemption applications expeditiously,” the FBR noted.

The tax authority said around 1,275 applications for exemption certificates were pending with commissioners as on January 31, 2021.

The apex tax agency also observed that about 707 applications out of 1,275, which constituted 56 percent of total exemption applications, were held up beyond 30 days, while about eight were lying unissued for above 1,000 days. As many as 320 applications were pending from 1-100 days from missioner appeals, it added.

Moreover, the FBR also pointed out that 568 applications were awaiting issuance for a period of 1-30 days.

The FBR directed all chief commissioners of Inland Revenue to take up the matter with concerned commissioners on serious note for speedy processing.

The chief commissioners have also been directed to send their progress made in February 2021 to the FBR by March 10, 2021.