The Federal Board of Revenue (FBR) has issued refunds of Rs 30.1 billion during the first three months (July-September) of 2019-20. It is learnt that the FBR had intended to reduce refunds by Rs 75 billion during the first quarter of 2019-20 under a plan to reduce stock of refund arrears for end-September 2019. However, the refund amount of Rs 30.1 billion was issued during first three months (July-September) of 2019-20.

On the issue of reduction in stocks of refunds arrears, the FBR would continue its efforts for reduction in the accumulated refunds. In September 2019, the FBR had stated that in order to provide liquidity support to the business and promote economic activities in the country, the government has decided to issue verified Sales Tax Refund of Rs 22 billion for all the years. Further, verified Income Tax Refund of Rs 1.7 billion (every case up to Rs 100,000) have also been released for the taxpayers.

The verification process for the remaining outstanding refunds is being expedited vigorously. The government of Pakistan plans to issue the outstanding verified refunds between Rs 100,000 to Rs 500,000 for all the years in October 2019. According to sources, the FBR has witnessed 30 percent growth in domestic taxes during July-September (2019-20).

Copyright Business Recorder, 2019