Federal Board of Revenue (FBR) Chairman Tariq Pasha Wednesday stated that next phase of electronic payment of pending sales tax refunds would take place as and when finance minister would return from abroad. The chairman FBR stated this in response to a query of Senator Saleem Mandviwalla who while presiding over a meeting the Senate Standing Committee on Finance asked whether there was a finance minister in the country and if so where he was.
Last month, the finance minister issued sales tax refunds of Rs 26.43 billion on 10,439 refund payment orders (RPOs) through an electronic system by pressing a computer button and the amount was transferred into the accounts of taxpayers. Pasha stated that Dar's return is awaited for issuance of sales tax refunds through electronic system.
Mandviwalla stated that in the past RPOs were being issued by a clerk but now the prime minister/finance minister is making payment of pending sales tax refunds to people. The committee was told that as long as payment of one RPO was not made, the process for issuance of another one can not be initiated. The committee was further told that payment of sales tax refund through computerized system has solved numerous problems.
The chairman of the committee said he heard that Finance Minister Ishaq Dar was due to appear before the court but he failed and now he is facing arrest warrants. Mandviwalla also stated that the committee was being complained that tax officials are drawing amount from companies' accounts without bringing it into their notice and even drawn amount is not returned to them. This, chairman of the committee stated, was impacting business and investment, besides creating negative sentiments for the government.
The chairman FBR explained that those companies whose tax matters were resolved, the amount drawn from their account was returned to them. The FBR officials briefed about the implementation of the committee's proposals to the Finance Bill 2017 and stated that of the total 279 proposals, 112 were related to the FBR. Eighty percent proposals of Senate Standing Committee on Finance were accepted while some of them about FBR powers and the federal government were not accepted.
The FBR also agreed to the proposal suggested by the committee for increase in rate of federal excise duty by 5 percent on lease of motor vehicles by the non-filers of income tax returns during the next budget. The committee was also informed when proposals of the Standing Committee on Finance were presented in the National Assembly, the federal government also included some proposals which were neither suggested by the committee nor were these in the Finance Bill.
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