In a move to clear decks for the successful implementation of 'reformed GST' by January 1, 2011, the Karachi Regional Tax Office (RTO) approved some 1004 refund claims in November, 2010. According to the provisional statistics made available to Business Recorder, some 2288 sales tax refunds claims, amounting to Rs 1.70 billion, were sanctioned during July 2010 to October 2010, depicting 48.8 percent growth as compared to last year's corresponding period.
Karachi RTO approved 1004 sales tax refund claims in November as against 476 claims released in November 2009. Official sources confirmed that the department had accelerated the process, adding that Karachi RTO has so far sanctioned Rs 2.19 billion sales tax refunds from July 2010 to November 2010.
They said that some 20,000 refund cases, amounting to Rs 10.13 billion, were still pending in the department, and hoped that around 70 percent of these refund cases would be flushed out by the end of current month. They said that FBR had directed its field formations to dispose of all pending refund cases before implementation of 'reformed GST', and added that the World Bank had also expressed serious reservations in this regard. They said that successful implementation of 'reformed GST' could be impossible without its complete disposal.
They said that Carlos Silvani was of the view that the successful implementation of RGST, which is being expected by the end of current calendar year, would be contingent upon the quick disposal of pending sales tax refunds. Sources that the said process in Karachi RTO was earlier going at a snail's pace as the relevant data was scattered at various places, creating hardships for the department to accumulate the same in useful manner. But now the Karachi RTO has computerised all records and has started releasing sales tax refunds. Moreover, they said, the department also kept an eye on the said process to rule out the possibilities of corrupt practices besides maintaining transparency in it.
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