FBR to clear Rs83b refunds in three months

According to The Express Tribune, the Federal Board of Revenue has been asked to release pending income tax refunds worth Rs83 billion over the next two to three months. FBR Chairman Rashid Mahmood Langrial gave that instruction during a meeting with leaders of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The gathering followed a directive from Prime Minister Shehbaz Sharif that asks for regular sessions with Karachi's business representatives during the opening week of each month.

FPCCI senior vice president Saquib Fayyaz Magoon said several decisions came out of the session. He called the action against abuse of grey fabric within the Export Facilitation Scheme (EFS) an important development, and noted that exporters were struggling with elevated valuation decisions for inputs brought in under the scheme. According to him, the scheme's 10% value-addition condition concerns finished goods exports rather than imports of industrial inputs.

Income tax refunds also got detailed attention at the session. A prior decision had set a one to two month window for settling deferred refunds. Magoon pointed out that pending refunds totalled Rs83 billion, and in response the FBR chairman instructed that the amounts be cleared in two to three months.