CBR intentionally delaying Rs 2 billion refund: PVMA

The Pakistan Vanaspati Manufacturers Association (PVMA) and Central Board of Revenue (CBR) are on a collision course on the issue of delay in payment of sales tax refund pertaining to 2002-03.
The PVMA said that CBR was intentionally delaying refund to its members, and further delay would mean erosion of working capital of the industry.
Talking to Business Recorder, PVMA chairman, Shaikh Ikram, said ghee millers were in serious trouble due to non-payment by CBR of refund claims of 2002-03, totalling over Rs 2 billion. He alleged that the CBR was pulling rugs from the feet of the millers by denying payment of refunds to them.
Ikram deplored that the CBR was turning deaf ear to PVMA requests for a meeting to discuss the possibilities of amicable solution to the controversy.
According to him, the PVMA is waiting for CBR response to its request for a meeting with the CBR for the last one month. He hinted at calling a meeting of PVMA executive body if the issue remained unsettled any more.
He said that the issue could not be left undecided for indefinite period. He said that non-payment of sales tax was creating financial constraints for ghee industry and the CBR should feel its seriousness for early settlement.
Sales tax refunds of 2002-03 are now overdue by one year. The issue turned into a serious controversy when CBR refused to entertain ghee millers' claims, saying that refund claims were exaggerated.
After a series of meetings, the two parties had reached an understanding that the CBR would conduct special audit of four ghee mills as test case and take the outcome as parameters to work out refundable claims of the other units.
The CBR appointed Member Audit, Pervez Amjad, for audit of four mills and work out parameters to calculate refund of the other units. Pervez held a number of meetings with PVMA team headed by Secretary Dr Samdani to complete the task. His team conducted special audit of four units, but the idea did not work to take the issue to logical conclusion since the CBR held back announcement of the outcome of special audit.
The PVMA has made several attempts to convince the CBR that it should work out parameters to calculate refunds of the rest of the units but in vain.