The Federal Board of Revenue (FBR) Wednesday credited an amount of Rs 26.4 billion sales tax refunds, in two stages, directly into the taxpayers' bank accounts. Sources told Business Recorder here on Wednesday that an amount of Rs 26.4 billion has been paid to the taxpayers in two stages. The sales tax refunds have been directly credited to the bank accounts of the taxpayers.

The refund payments were made through direct electronic transfer to claimants' bank accounts through State Bank of Pakistan (SBP) in November 2016. Since November 2016, sales tax refund has been credited directly into the account of the taxpayers within 24 hours. The arrangements have been made to ensure that the amount of refund should be credited directly into the account of the taxpayers within 24 hours.

The FBR has cleared the backlog of refunds dues where Refund Payment Orders (RPOs) were issued till April 30, 2017 in case of over Rs one million. It was announced by the finance minister in the budget speech for the year 2017-18 that taxpayers' long outstanding demand for payment of refunds will be addressed soon and the sales tax refunds against refund payment orders (RPOs) issued up to 30th April, 2017, shall be paid in two stages. Firstly, payments against RPOs involving amount up to Rs 1 million were to be paid by 15th July, 2017; and in the second stage refund against RPOs of amount more than Rs 1 million were to be paid by August 14, 2017, he had said.

The refund payments up to Rs 1 million were paid on 15th July, 2017 whereas payments against RPOs exceeding Rs 1 million are being issued today (Tuesday), well before the date earlier announced. He added that total refund including refund issued in the first phase come out to Rs 26.43 billion covering 10,439 RPOs.

Copyright Business Recorder, 2017