According to the new procedure, the FBR Refund Settlement Company (Private) Limited means the company with this name as incorporated under the Companies Ordinance, 1984, for the purpose of settlement of sales tax and income tax refund claims including payment by way of issuing refund bonds.
The sales tax refunds payable under may also be paid through sales tax refund bonds to be issued by FBR Refund Settlement Company (Private) Limited, in book-entry form through an establishment licensed by the Securities and Exchange Commission of Pakistan as a central depository under the Securities Act, 2015, in lieu of payment to be made through issuance of cheques or bank debit advice.
The Board shall issue a promissory note to FBR Refund Settlement Company Private Limited (company), incorporating the details of refund claimants and the amount of refund determined as payable to each for issuance of sales tax refund bonds, hereinafter referred to as the bonds, of the same amount. The bonds shall be issued in values in multiples of one hundred thousand rupees. The bonds so issued shall have a maturity period of three years and shall bear annual simple profit at ten per cent. The bonds shall be traded freely in the country's secondary markets. The bonds shall be approved security for calculating the statutory liquidity reserve. The bonds shall be accepted by the banks as collateral. There shall be no compulsory deduction of Zakat against the bonds and sahib-e-Nisab may pay Zakat voluntarily according to Shariah, the FBR procedure said. After period of maturity, the company shall return the promissory note to the Board and the Board shall make the payment of amount due under the bonds, along with profit due, to the bond holders.
The bonds shall be redeemable in the specified manner before maturity only at the option of the Board along with simple profit payable at the time of redemption in the light of general or specific policy to be formulated by the Board. The refund shall be paid in the aforesaid manner to the claimants who opt for payment in such manner, according to the FBR procedure. The federal government may notify procedure to regulate the Issuance, redemption and other matters relating to the bonds, as may be required.