According to a reliable source, the KPRA statement said that the Federal Board of Revenue is violating the Memorandum of Understanding (MoU) signed between them and KP Revenue Authority. It further said the source confirmed to media that, as the FBR is highly far-off of its target, is now trying to mislead the Federal Government by presenting the fake digits and also included the amount of revenue, which FBR clutched from the Provinces and must have to return to them.
KPRA statement added that the source further revealed and shared that FBR is bound to return the outstanding amount approximately Rs 2 billion to Khyber Pakhtunkhwa Revenue Authority.
In this regard an officer of the Authority disclosed while on bit of not showing his identity that the Authority is continuously writing to FBR for its return of Rs 1.9 billion but the Authority up till now didn't get any positive response from the other side, in this connection the last letter to FBR was dispatched in the previous week, the statement added.
He (member of the Authority) said that FBR is bound to pay the said amount to KPRA as input tax adjustment under Sales tax on Services. The Authority, in its official communication to FBR, has requested for early payment of the amount payable under input tax adjustment as the current financial year is coming to a close on 30th June 2018.
The FBR, on the other hand, has so for shown lukewarm response in the matter which is not only violation of Memorandum of Understanding (MoU) signed between FBR and KPRA to address such issues but also tantamount to denying the lawful rights of the province, he further expressed that the Authority is now quite ready to find some other alternative legal route to get his legal right from FBR.
It is pertinent to mention here that KPRA had signed a Memorandum of Understanding (MoU) with FBR on November 23, 2016 for input adjustment of sales tax on goods and services, according to which FBR is bound to pay the aforementioned amount.
Political members of the province termed the way of the FBR as same as previously WAPDA practiced by holding the hydro-electric subsidy of the province, same like FBR is trying to snatch the prime right of the province which is unbearable for them. In this regard provincial Chief of Jamaat-e-Islami, Senator Mushtaq Ahmad Khan, expressed that Rs 1.9 billion may be a very less amount for the Federal Government but is a very huge amount for the province like KP and which may play a pivotal role in the development of this different calamity affected province. He stated that the FBR should return the amount on their earliest and the delaying tactics in this regard would be intolerable for the populaces of the province. He stated that the Federal Government should also take notice of the issue and must ask the Federal Board of Revenue for creating such distrusts and conflicts between the provinces and the Center.