Islamabad: The Federal Board of Revenue (FBR) has sought a supplementary grant from the finance ministry in a bid to address pending tax refund claims; which have increased to PKR 710 billion, a news source reported on September 3. These include PKR 142 billion in sales tax refunds and PKR 568 billion in income tax refunds.
In a briefing to the National Assembly Standing Committee on Finance on the matter of tax refunds, Member Inland Revenue Operations Dr Mohammad Ashfaq stated that the refund claims were supposed to be paid by the Ministry of Finance in the form of supplementary grants. He also revealed that FBR had fully automated its sales tax refund system to ensure smooth proceedings.
Advisor to the Prime Minister on Institutional Reforms Dr Ishrat Husain also briefed the committee members about FBR’s tax reforms. He stated that for the measures to take hold, the government will also have to overhaul the tax system.
