Foreign investors demand inter-adjustment of tax refunds

Foreign investors demand inter-adjustment of tax refunds

KARACHI: Foreign investors have demanded the Federal Board of Revenue (FBR) of allowing inter-adjustment of income/sales tax refunds as part of law.

The Overseas Investors Chamber of Commerce and Industry (OICCI), the representative body of foreign investors operating in Pakistan, in its proposals for budget 2022/2023 demanded the authorities to allow inter-adjustment of income / sales tax refunds.

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The chamber identified delay and procedural hassles in processing of outstanding refunds.

It recommended that all pending tax refund be cleared in an orderly/ prearranged manner.

“Inter-adjustment of income/sales tax refunds should be allowed as part of law,” it demanded.

READ MORE: OICCI urges harmonize sales tax rates

Verification of input sales tax on services hence verification process for refunds should start automatically as soon as an application for refund is filed by the taxpayer and tax refunds be cleared within 45 days.

With the introduction of MIS on IRIS, it has become easy to introduce an online self-verification of refund. Wherein taxpayer after applying for refund verification us 170 may be given an option to select CPRNs online against each section wherein tax deduction/ collection has been made and create a virtual verification file for easy processing by assessing officers. In case of any discrepancy, only missing CPRNs will be verified manually.

READ MORE: OICCI suggests simplify issuance of exemption certificate

Earlier, the OICCI demanded structural reforms in Pakistan customs to bring Illicit trade into tax ambit.

It said custom valuation should be done by using latest method of valuation including, online search and matching international and regional pricing and taking local legal brand owners on board.

Unauthorized imports of counterfeit products should be effectively checked through registration of brands with the custom authorities in coordination with the original brand owner/ registered in Pakistan.

The data of import should be public property (restrictively) to ensure transparency, which will also help in taking over of goods under section 25A of the Custom Act, 1969.

READ MORE: OICCI suggests revamping withholding tax regime

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