FBR-KCCI panel made to facilitate release of stalled sales tax refunds

The chairman of the Federal Board of Revenue (FBR) has formed a six-member committee to expedite deferred cases of sales tax refund claims. The committee will have three representatives of the Karachi Chamber of Commerce and Industry (KCCI) and three chief commissioners and would also discuss other taxation issues and review policy changes wherever required every month. In a visit to the Karachi Chamber of Commerce and Industry (KCCI), FBR chairman Malik Amjed Zubair Tiwana said the refund payment orders (RPOs) against all refund claims till July 10 had already been issued whereas refund claims of over Rs100 billion, which have been deferred by the system, would be reviewed by the joint committee to expedite the process for payments. On average, refund claims of Rs1bn generate every day under the automated system which means the FBR issues refunds of up to Rs30bn every month but the process was delayed in the recent past due to some system malfunctioning, he said, adding, that the FBR was trying to make up to the same level by issuing maximum refund claims every month. According to the KCCI’s press release, he said that there was no human involvement at any stage in processing refund claims but when the system defers any refund claim, it is forwarded to field formations who seek necessary documentation to finalise the precise amount of refund claims.