The Federal Board of Revenue (FBR) has cleared Rs 15.6 billion in sales tax refunds against 8,415 refund payment orders (RPOs), marking a significant move to enhance business liquidity and stimulate economic activity in the country.
Dr. Abdul Hafeez Shaikh, the Adviser to the Prime Minister on Finance and Revenue, made the announcement on Wednesday.
In a Tweet, Dr. Shaikh stated, “The FBR has cleared Rs 15.6 billion today in Sales Tax refunds against 8415 Refund Payment Orders (RPOs) to enhance the liquidity of businesses and economic activity in the country.” This measure aims to alleviate financial strain on businesses and promote economic growth by facilitating the flow of funds back into the economy.
Furthermore, Dr. Shaikh highlighted that this refund clearance is in addition to Rs 5.4 billion already disbursed as bonds and adjustments, further underlining the government’s commitment to addressing financial challenges faced by businesses.
The decision to expedite tax refunds stems from a government initiative aimed at fostering economic activity and providing vital liquidity support to businesses across various sectors. Dr. Shaikh had previously announced the government’s intention to prioritize tax refunds as part of its economic stimulus measures.
In a Tweet dated September 02, 2019, Dr. Shaikh had outlined the government’s strategy regarding tax refunds, emphasizing the importance of these measures in promoting economic growth. The decision included the immediate release of Rs22 billion in verified sales tax refunds for all years, along with the disbursement of Rs1.7 billion in income tax refunds (up to Rs one lakh) for all years.
Moreover, the verification process for other outstanding refunds was pledged to be expedited, ensuring that businesses receive the financial support they require in a timely manner. Additionally, it was decided that income tax refunds ranging from Rs 100,000 to Rs 500,000 for all years would be disbursed in the following month, further easing financial burdens on taxpayers.
This latest move by the FBR is expected to inject much-needed liquidity into the business sector, allowing companies to meet their operational expenses, invest in growth initiatives, and contribute to overall economic recovery efforts. By prioritizing tax refunds, the government aims to create a conducive environment for business expansion and job creation, ultimately driving sustainable economic development in the country.
As businesses navigate through economic challenges, measures such as timely tax refunds play a crucial role in supporting their financial stability and ensuring their continued participation in driving economic growth. The FBR’s initiative to clear sales tax refunds underscores the government’s commitment to fostering a business-friendly environment and bolstering the country’s economic resilience amidst evolving global economic dynamics.
