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Thursday December 01, 2022

FPCCI hails FTO tax refund verdict

By Our Correspondent
April 09, 2022

KARACHI: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Friday hailed Federal Tax Ombudsman (FTO) decision that directed an automaker to return excessive general sales tax (GST) to its customers.

According to FTO, at least 24 complainants were wrongfully charged 17 percent sales tax for a 998cc vehicle, instead of the applicable 12.5 percent at that time, i.e. after July 2021 when the Finance Act 2021 had become applicable.

FTO not only ordered to return the excess amount collected; but, he also declared the practice as a case of maladministration, Irfan Iqbal Sheikh, president FPCCI, said. After FTO and President of Pakistan’s direction, the automaker agreed to pay back up to 4.5 percent extra general sales tax (GST) taken from its customers.

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