KARACHI, Nov 30: The Corporate and Southern Regions of Karachi are working on war-footing to clear all outstanding refund cases to ensure that payments and liquidations are made by December 31, 2005, as per the directives of the Central Board of Revenue (CBR).

According to official estimates around Rs500 million were presently pending payments towards refunds in the Southern Region of Income Tax and around Rs1.5 billion in the Corporate Region, Karachi. Similarly, around Rs2.5 billion were pending towards refunds in the Large Taxpayers Unit (LTU), Karachi.

A decision to clear all pending refund payments was taken in the Commissioners’ Conference held in October in Islamabad and presided over by CBR Chairman Abdullah Yusuf.

Under the ongoing reforms agenda the CBR is presently striving hard to bring in cultural change in the working of revenue collecting machinery and also build confidence of taxpayers. If huge funds are being spent on furniture and fixtures and introducing automation in tax collection system it is equally being emphasised to bring in change in the mindset of tax collectors.

With these objectives, the CBR has taken initiatives to liquidate outstanding refund claims of billions of rupees. Contrary to past experience people have started getting their refund payments without contacting or making any sort of efforts to get them.

In the past refund payments remained a dream for taxpayers and if any move was made towards getting them it was not possible without sharing the amount with the tax officials.

Talking to Dawn Regional Commissioner of Income Tax, Corporate and Southern Region Abrar Ahmed said that presently entire staff was working on preparing refund claims and in order to meet the deadline of December 31, 2005 for clearing or liquidating refunds.

He said that in case there was a dispute or challans had not been verified the refunds would not be paid.

Responding to a question, Abrar Ahmed said that according to department’s assessment around 95pc of pending or due refunds were without any dispute and could be cleared before the deadline. He further said that for disbursement of all pending or due refunds a transparent system had been evolved which would be on first come first served basis and in case those who did not approach the department their claims would be sent by post or courier service and even given to their tax advisers.

“Presently the objective is to dispose of all pending refund claims and in case of any verification or dispute efforts would be made to overcome them at the earliest in order to get maximum result out of this drive initiated by the CBR,” he maintained.