Over Rs seven billion sales tax refund: SSGCL appears to be at loggerheads with FBR

Sui Southern Gas Company Limited (SSGCL) appears to be at loggers head with the Federal Board of Revenue (FBR) over a claim of some Rs 7 billion sales tax refund. Insider told Business Recorder on Thursday that the company has asked the Large Taxpayers Units (LTUs), Karachi for immediate release of pending sales tax refunds.
He said the department is using dilly-dally tactics to avoid releasing the amount of sales tax refunds in the last quarter of the financial year. He further said the Karachi LTU is already far behind from the annual revenue collection target of Rs 126 billion and if it is released, the revenue collection may not surpass even Rs 100 billion.
Sources in Karachi LTU dispelled the impression that around Rs 7 billion sales tax refunds are payable in their ledgers and the department is using delaying tactics to release the same. They further said the accumulated sales tax refund of SSGC is Rs 3.38 billion that is being released now. The department has recently dispatched some Rs 300 million Refund Pay Order (RPO) to the company.
Replying to a question, they said that the tax consultants of the company have approached the Karachi LTU to obtain extraordinary favour in this connection. They said that the tax consultants are insisting that the department releases the entire amount of sales tax refunds before the completion of all formal procedures, but the department has refused to do so and has sent a letter to the board for further action. They added that the FBR has, so far, not given any response in this regard.
When contacted, Inayatullah Ismail, Public Relations Officer (PRO), SSGC said there is no issue with the tax collecting authority regarding the issuance of sales tax refunds. He expected that the company would receive the entire sales tax refunds soon.