FBR agrees to clear Rs126 billion in pending refunds, rebates within three months

Profit by Pakistan Today reported that the FBR has committed to settling roughly Rs83 billion of old income tax refunds plus Rs43 billion of unpaid rebates over a period of two to three months. The commitment followed a meeting between FBR Chairperson Rashid Mahmood Langrial and the Federation of Pakistan Chambers of Commerce and Industry, held under instructions from Prime Minister Shehbaz Sharif. Refunds backed by Refund Payment Orders issued since August will be paid immediately, the report said.

Saqib Fayyaz Magoon, FPCCI Senior Vice President, said the chairperson accepted several proposals during the session. A revised understanding under the Export Facilitation Scheme clarifies that the 10% value-addition requirement applies to finished-product exports, not imports of industrial raw materials. Exports will not be stopped merely because that value is not yet recorded, and Goods Declarations may proceed now with later checks on value addition, costs and valuation. The FBR also agreed in principle to check bank Funds Identification conditions at the out-charge stage.

Further steps include completing low-risk sales tax registrations within one week and seeking trade body checks for high-risk applicants. Langrial said the FPCCI request to remove differences between industrial and commercial raw material importers would go to the FBR Board. Only around 3,800 to 5,000 small traders have registered to date, against a target of one million.