ISLAMABAD, March 19: The tax authorities have withheld a sum of Rs14 billion against refund payable to major exporters across the country during the first eight months of the current financial year in a bid to reach closer to the revenue target set for the same period.
Official figures compiled by the Federal Board of Revenue (FBR) showed that the refund and rebate payment to the taxpayers declined by more than 23 per cent to Rs45.096 billion in July-February of the current fiscal year against Rs58.698 billion paid last year.
The refunds and rebate figures for the period were much higher as the actual figures were not released by the FBR to avoid criticism from the business community, who is facing financial crunch on the back of double-digits inflation and acute energy shortages.
Official statistics showed that the payment of income tax refunds declined by 17 per cent to Rs18.045 billion against Rs21.768 billion during the same period last year.
The sales tax refunds declined by 31.4 per cent to Rs18.661 billion against Rs27.209 billion over the same period last year. While the customs rebate declined by 13 per cent to Rs9.613 billion against Rs8.363 billion over the same period last year.
A marginal increase of 13.4 per cent was recorded in the revenue collection as it stood at Rs584.366 billion for the first eight months against Rs515.098 billion collected earlier.
For reaching the target, the tax authorities will have to raise an amount of Rs440.634 billion in March-June period of this year, which seemed a far cry.
Meanwhile, in a board meeting the FBR chief expressed his displeasure over thousands of refund claims pending at the export collectorate and model customs collectorate (MCC), Karachi, FBR Chairman Abdullah Yousuf directed member (Customs) to take action against the officials responsible for this huge pendency that has caused inconvenience to the exporters.
The meeting, however, noted that 80 per cent of the refund claims were of very small amount, which should be paid immediately.
He directed the relevant department to coordinate with technical wings of the board to clearly identify problems being faced by the taxpayers in e-filing of returns, tax management system and computerised system of payment of taxes and all possible efforts be made in collaboration with NBP to resolve them at the earliest.
He observed that despite all odds the FBR was still in a position to cross Rs1 trillion mark by June 30.
Mr Yousuf also directed Member tax administration reform project (TARP) and the line members to observe timeline and expedite completion of refurbishment of the RTOs and MCCs.
He also directed the Member (TARP) and Member (IMS) to make necessary arrangements to provide computer hardware to field formations -- LTUs and RTOs --on priority basis.
He directed the sales tax wing to ask collectors of sales tax to conduct selective taxpayers’ audit wherever they have any doubt. He also directed Member (Audit) to evaluate the audits, conducted by LTU, Lahore, and inform the council about its results.
