ISLAMABAD: The Senate Standing Committee on Finance learned on Wednesday that Finance Minister Ishaq Dar would supervise the payment of sales tax refunds in the near future.

Responding to complaints by members of the committee, Federal Board of Revenue (FBR) Chairman Tariq Pasha said the board already made all preparations in this regard and that he was waiting for the go-ahead from the finance minister.

The committee was informed that the finance minister issued sales tax refunds amounting to Rs26.43 billion against 10,439 refund payment orders (RPOs) last month. Mr Dar conducted an electronic ballot, which led to the transfer of respective amounts to the accounts of taxpayers.

Senators were told that the payment of sales tax refunds through a computerised system solved numerous problems. The FBR chairman said he was confident that the next round of refund payments would be conducted soon. Some senators wondered whether the recently issued arrest warrants for Mr Dar would delay the next ballot.

Committee Chairman Saleem Mandviwalla said he received complaints from business entities that tax officials would draw money from their bank accounts without bringing it to their knowledge. “Such acts have a negative impact on business and investment,” said Mr Mandviwalla.

However, the FBR chairman said the funds drawn from bank accounts were returned once the tax matter was resolved.

As for the implementation of the committee’s suggestions regarding Finance Bill 2017, it was stated that 112 of 279 proposals were related to the FBR. About 80 per cent of the committee’s proposals were accepted, senators were told. Some of the proposals regarding the federal government and FBR’s power were not accepted though.

The FBR also agreed to increase the rate of federal excise duty by 5pc on the lease of motor vehicles by non-filers of income tax returns.

Published in Dawn, September 21st, 2017