ISLAMABAD, Nov 6: The Central Board of Revenue decided on Saturday to constitute a three-member committee in each collectorate of sales tax to resolve the outstanding issue of double refunds paid to exporters.

A sales tax official told Dawn that it was decided that the department would not collect the refund from those exporters who got refund under sales tax act and customs act for different inputs used in the exportable products.

However, those exporters who have got refund under sales tax act and customs act against the same inputs used in the exportable products would have to refund the same to the department.

The official said that the committee comprising additional collector, exporter and a representative of a trade association would determine the issue of refund.

It was also decided that those exporters, who would return the principle amount of refund to the department, the government would not collect any additional tax from them. The CBR also announced waiver of penalty on those exporters.

The government had earlier allowed exporters to claim refund under customs act until June 31, 1996. During the budget of 1996-97, it was decided that the exporters could now only get refund under the sales tax act.

To facilitate the exporters, the government had announced a grace period of three months - from July to October (1996) to get refund under both acts. This period was further extended up to December 31, 1996.

The official said that during this period, it was observed that a majority of exporters had applied for refunds for the same inputs used in the exportable products under customs and sales tax acts.

To recover this amount, the CBR initiated 600 cases against exporters involving an amount of Rs2.5 billion, added the official.