Overseas Investors Chamber of Commerce and Industry (OICCI) expressing disenchantment over human intervention in the sales tax refund process, said it raises transparency issues in the department; it is learnt here on Wednesday.
According to sources, the OICCI in its letter sent to the Federal Board of Revenue (FBR), said although the board had set up an Expeditious Refund System (ERS) for processing sales tax refund claims, electronically, human intervention in the process had not only raised transparency issues but also causing long delays in the release of sales tax refunds.
Sources said the OICCI had also pointed out the problems being faced by its members in adjusting sales tax paid on services provided by persons registered with Sindh Revenue Board (SRB) and Punjab Revenue Authority (PRA). Sources said the OICCI had also proposed to the FBR to introduce electronic invoicing system to remove ambiguities and make it as taxpayer-friendly system.
When contacted, the FBR officials, on a condition of anonymity confirmed to have received a letter from the Chamber, saying that refund claims were being processed through ERS, which was completely transparent and free of delays. However, concerned commissioners are being directed to determine the reasons for the delay in case of the OICCI member and to remove any unnecessary hurdles.
They dispelled the impression of having problems in ST return in case of adjustment of sales tax on services, saying that current ST return form already allowed for adjustment of sales tax paid on services provided by persons registered with SRB and PRA and if the OICCI members were facing any problem, it must be brought to the notice of the FBR for appropriate action.