KARACHI: Multinational firms have asked the Federal Board of Revenue (FBR) to settle their pending tax refunds on a priority basis.

In a recent letter to FBR Chairman Malik Amjad Zubair Tiwana, the representative body of foreign investors operating in Pakistan demanded that its members’ pending tax refunds — which amounted to Rs93.6 billion at the end of September — be settled urgently.

Of the Rs93.6bn figure, Rs51.9bn constitutes income tax refunds while Rs41.7bn accounts for sales tax refunds.

A tax refund is a payment to the taxpayer after it has paid to the government more tax than it owes.

Businesses have routinely accused tax authorities of collecting and withholding more-than-due taxes to meet their revenue targets.

According to Overseas Investors Chamber of Commerce and Industry (OICCI) Chief Executive M. Abdul Aleem, pending tax refunds of foreign investors have been increasing rapidly for the last two years.

Based on statements submitted to the FBR in the past, the pending tax refunds of OICCI members as of September 2023 are 80 per cent higher than a year ago, he said.

Published in Dawn, October 5th, 2023