Federal Government has returned Rs 1.01 billion out of the total Rs 1.5 billion collected by Federal Board of Revenue (FBR) from Sindh in the head of FED on services during July 2011. Informed sources in Sindh Revenue Board (SRB) told Business Recorder that Finance Ministry had returned the amount to Sindh a few days ago and SRB also received a letter of finance ministry in this regard.
Though Sindh started collecting sales tax on services in June 2011 through SRB, FBR had also collected around Rs 2 billion from Sindh in the head of Federal Excise Duty (FED) on services during July 2011, they said. " The amount was transferred following a meeting held in Islamabad a few weeks back, wherein FBR officials agreed to return the amount of services taxes collected from Sindh," they said.
A high official of SRB told Business Recorder that with receiving of Rs 1.01 billion, now very small amount is owed by federal government which would also be returned to Sindh in last week of June of this year. With the latest development, he said the SRB would achieve its target of Rs 25 billion collection for FY 2011-12.