The Federal Board of Revenue (FBR) has informed the Senate Standing Committee on Finance that the FBR has placed a 'First-in-First-out' built-in software system for speedy payment of refund payments. Sources told Business Recorder here on Thursday the issue of refund payments was discussed in a recently held meeting of Senate Standing Committee on Finance.

Replying to another query raised by the committee, tax authorities said that there was a First-in-First-out built-in software system for refund payments, under which prior to clearance of an existing refund case of a company, no other case of that company could be processed and was withheld by the system itself.

The FBR officials said that exception was granted only once on the directives of the Prime Minister's office purely on need basis. The chairman FBR assured the committee that a meeting with the companies would be convened again, if they were not satisfied. The committee directed the FBR to hold another meeting with the companies to address their reservations in the matter and resolve their issues.

While deliberating on the pending refund cases of the companies, as recommended by the committee, tax authorities have informed that two companies visited the FBR and direction in both cases was given to the field offices to expedite the payment of refunds. He further apprised of the updated refund payment status in relation to four companies as directed by the committee. At that juncture, the chairman committee inquired about the refund case of company, as the amount was withdrawn by the tax authorities directly from the account of the company and was to be refunded.

The chairman FBR informed that the amount was withdrawn against a tax demand, however, the relief was provided by appellate tribunal Inland Revenue and the appeal effect had also been given to them, however, no refund was determined.

Copyright Business Recorder, 2017