A Lahore-based manufacturer of synthetic yarn has strongly contested that electronic transfer of admissible sales tax refund to bank account has not been done despite issuance of Refund Payment Order (RPO), negating the Federal Board of Revenue's claim that no complaint has been received regarding non-transfer of the refund amount.

Khalid Mahmood Akhtar, General Manager Sales Tax of Olympia Blended Fibre Mills Limited, has written a letter to FBR Chairman Tariq Bajwa for transfer of sales tax refund in their concerned bank account in consequence of Refund Payment Order No. 8046199/2017, dated 07.02.2017.

According to the company's representative, the FBR had announced that it has not received any complaint from any of the claimants/exporters to whom payments were made regarding non-transfer of the refund amount. Contrary to this, the company has not received duly admissible sales tax refund electronically into the bank account under the direct credit facility.

The FBR had also clarified that a sum of Rs 23.858 billion was to be electronically transferred to the claimants/ exporters in July and August 2017, as per commitment of minister for finance and revenue made in his budget speech. The said company is surprised how the FBR's electronic system can skip their duly processed/cleared and issued RPO and not made part of the Rs 23.858 billion sales tax refunds issued to taxpayers particularly exporters.

Moreover, the FBR had said that some amount was not credited for various reasons such as closure of account, inactive account, incorrect account number provided by the claimant, etc. On the other hand, the company's representative said that the company's accounts are not facing any such situation as mentioned by the Board.

The FBR has been informed that in consequence of the policy statement issued by the government that the refund payment orders (RPOs) in the cases of refund of over one million rupees will be issued up to April 30, 2017, a refund payment order (RPO) vide No. 8046199/2017, dated 07-02-2017, amounting to Rs 51,922,702 has been issued in favour after detailed scrutiny.

But unfortunately, consequent refund payment credit to relevant bank account through electronic transfer was not given in the company's favour neither prior to the cut of date ie August 14, 2017 nor till to date, which is against the policy decision and guarantees/ assurance given by the high-ups of the officials.

In view of the situation, the company has requested that sales tax refund credit may be given at the earliest in the interest of justice and fair play, official of Olympia Blended Fibre Mills Limited added.

Copyright Business Recorder, 2017