It said that the agreement was supposed to have applied retroactively from July 1, 2016. According to the MoU, the KPRA was supposed to file its claims for Rs 1.9 billion as input tax adjustments to the FBR on April 16, 2018.
However, the release said the FBR has yet to proceed with the matter. But with the financial year set to close in a little over six weeks, the KPRA has insisted the FBR to expedite the processing of its claim.
The KPRA DG forwarded the letter to the FBR on May 8, a copy of which is available at KPRA HQ.
It further stated that the sum of the claims had been determined based on the data provided by the FBR from time to time. It added that the KP government has been pressing hard for the early finalization of the exercise and have attached high hopes toward receiving its lawful share from the federal government as claimed by registered tax payers.
"Any further delay in the finalization of the exercise and adoption of final figures are detrimental to the financial interests of the KP government," the KPRA chief wrote. It adds that the claims sent by KPRA should be processed and sent to the finance division for further action as per the MoU.
The release said that the MoU states that after a case is referred by the joint committee of the FBR and KPRA, the finance division will have 15 days to deduct the net amount reflected as over-adjusted in favour of KPRA from the sales tax revenue collection figures of the FBR and transfer the sum back to the province.
It added that the KPRA further asked the FBR to process the matter on priority as it warned the federal tax body of being dragged to the interprovincial coordination in case of failure. Meanwhile, KPRA Additional Collector Shahnawaz Khan while talking to media said that the claims filed were for the year 2016-17 as they worked out balances based on the previous fiscal year's data.
"We have not yet finalised the data for the current fiscal year," he said, adding that the FBR had not shared data of the tax payers due to which the process got delayed.
"We would write another letter to the FBR if they do not respond to this one," he said adding that they did a comparison of the invoices of the tax payers to calculate the balance and the figure of Rs 1.9 billion came out.