FBR can hold up to Rs390 billion in tax refunds under IMF condition, Senate panel told

According to Dawn, officials told a Senate finance committee on Thursday that the FBR may keep up to Rs390 billion in refunds outstanding at one time, a ceiling tied to the IMF programme. The session followed complaints that some taxpayers have waited years for repayments despite a newer system meant to speed them up. Lawmakers noted that refunds under that system were supposed to be cleared within 72 hours.

Officials said roughly Rs197 billion was refunded in the opening pair of months of the new fiscal year, Rs40 billion more than the Rs157 billion paid in the same period last year. Refunds totalled about Rs500 billion in the year before, according to the tax body. Payments now follow a first-in, first-out sequence, a change officials said was meant to curb discretion.

The committee also examined Oleocorp, a chemical company that said more than Rs270 million in refunds had been pending for six years after it produced glycerin for export. FBR officials gave an assurance that the case would be settled within a month, and the panel ordered the refunds released with a report due in 30 days. Separately, the SBP was asked for a written statement on a 1999 circular on profit payments on foreign currency accounts, as the matter is sub judice.