Refund of excess amount to car buyers: President rejects FBR’s application against FTO’s order

ISLAMABAD: President Arif Alvi has rejected a review representation made by the Federal Board of Revenue (FBR) against Federal Tax Ombudsman (FTO) order to refund excess amount of 4.5 percent sales tax charged from the purchasers of the locally-manufactured cars up to 1000cc.

Declaring the FBR’s representation as illegal, President Arif Alvi has declared that there is no provision under the Federal Ombudsmen Institutional Reforms Act, 2013, for filing a review against orders of the president of Pakistan passed on any representations.

The president has issued an order in this regard.

Alvi has rejected a review representation made by the FBR against a landmark judgment of the president dated March 10, 2022, wherein, the recommendations of the FTO in 24 complaints were upheld and the FBR’s representation regarding order of refund of excess amount of 4.5 per cent of sales tax in favour of the taxpayers was made, who were charged 17 percent sales tax as against 12.5 per cent on purchase of new motor cars of up to 1000cc.

Instead of implementing the FTO’s recommendations, upheld by the president of Pakistan for providing relief to the aggrieved taxpayers who were over charged by illegally collecting excess sales tax, the FBR without any legal authority, again filed a review representation.

The same has been rejected by the president on the grounds that there is no provision under the Federal Ombudsmen Institutional Reforms Act, 2013, for filing a review against orders of the president of Pakistan passed on any representations.

Copyright Business Recorder, 2022