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Tag: sales tax refunds

  • CDC to facilitate 600 businessmen to receive sales tax refund bonds

    CDC to facilitate 600 businessmen to receive sales tax refund bonds

    KARACHI: Central Depository Company of Pakistan Limited (CDC) will facilitate 600 businessmen in receiving their sales tax refunds issued by the Federal Board of Revenue (FBR) in the shape of refund bonds.

    Out of total 600 sales tax refunds claimants, around 200 businessmen have so far opened their CDC accounts.

    The government has planned to clear around Rs40 to 60 billion worth of refund claims through this scheme and it has finalized around 600 refund claimants who can Sales Tax Refund payments through Refund Bonds.

    CDC has already facilitated 90 businesses, who had opened their CDC Accounts, in getting Rs7 billion sales tax refund payments through Refund Bonds.

    This initiative was taken subsequent to the approval of amendments in Supplementary (Second Amendment) Act, 2019 by the Federal Government.

    In this regard, the Federal Board of Revenue (FBR) has also asked the refund claimants to open Sub Account or Investor Account with Central Depository Company of Pakistan Limited (CDC) and has issued procedures for opening of such accounts.

    The issuance of these Refund Bonds in book entry form through Central Depository System (CDS) will also help create ease of doing business for claimants as the Refund Bonds will be issued electronically in the system and there will be no paper or certificate issued. The claimants may just log in to the CDC web system and confirm that their Refund Bonds have been credited.

    In addition to this, the financing against Refund Bonds by Banks will also be very simple and efficient as Banks are already using CDC system and providing financing against different type of securities worth millions of rupees on daily basis.

    All the claimants need to do is to go to the Bank and mention their CDC account number and the Bank will retrieve all the information on real time basis from CDC system through CDC Pledge functionality and create a charge against these Refund Bonds with a simple click of the button.

    While commenting on this effort, Badiuddin Akber, CEO-CDC said that “CDC has always been ready to play its part in the progress and development of the country’s economy. We are more than willing to introduce convenience in doing business through digitalization to make our economy more business friendly and this initiative is one more step towards it.”

    In order to facilitate claimants, CDC extended full support and established facilitation desks at RTO Faisalabad and Multan in addition to the services extended from its offices in Karachi, Lahore and Islamabad. In this regard, a workshop was also organized for the Towel Manufacturers Association of Pakistan at TMA House, Karachi on June 01, 2019.

    CDC is also planning to establish a special facilitation Desk for the convenience of businesses at their Head office in Karachi.

  • FBR asks refund claimants to open CDC account

    FBR asks refund claimants to open CDC account

    KARACHI: Federal Board of Revenue (FBR) has asked taxpayers, who opted for a sales tax refund through bonds, to open their accounts with the Central Depository Company (CDC).

    In an advisory issued on Monday, the FBR said that refund claimants who have opted for sales tax payments through bonds should open investor account with the CDC if they do not already have such accounts.

    FBR said that refund claimants who have opted for payment through bonds but have not provided proper CDC account as per given format, can update CDC accounts by visiting FBR website.

  • FBR issues guidelines for refund payment through bonds

    FBR issues guidelines for refund payment through bonds

    ISLAMABAD: In order to facilitate businesses / exporters whose refund claims are pending with Federal Board of Revenue (FBR) and they are facing liquidity problem, it has been decided to pay sales tax refunds through bonds to the claimants who express willing to get refund through bonds.

    Following are important guidelines in this respect:

    — The bond scheme pertains to sales tax refund only.

    — The features of bond are provided under section 67A of the Sales Tax Act, 1990, as inserted vide Finance Supplementary (Second Amendment) Act, 2019.

    — The bonds shall be issued to the claimants who express willingness for the same by giving an option at e.fbr.gov.pk using their login ID.

    — The maturity period of bonds is three years from the date of issuance.

    — The bonds carry a simple profit of 10% per annum payable at the end of maturity period i.e. against a bond of Rs. 100,000, Rs. 130,000 shall be paid after maturity to the holder of the bond.

    — The bonds are transferable i.e. if a refund claimant who has been issued the bond can sell the same to another person / bank at a price agreed between the two parties.

    — The bonds shall be acceptable by banks as collateral for getting advances / loans.

    — There shall be no deduction of zakat on the bonds. Sahib-e-Nisab may pay zakat voluntarily as per shariah.

    — The bonds shall be payable against Refund Payment Orders (RPOs) as issued in favour of the claimant.

    — The bonds shall be issued in multiples of Rs. 100,000. The amount of refund payable as in excess of multiple of Rs. 100,000 shall be paid in cash by direct transfer through State Bank of Pakistan in the claimant’s account.

    — The bonds shall be issued through Central Depository Company (CDC). The transfer / pledging of bonds shall be handled by CDC at the option of bond holder.

    — The claimant who opt for issuance of bond should have an account with Central Depository Company (CDC). They can provide this account number while submitting their option for bonds to FBR.

    — If a claimant does not have a CDC account, he still can opt for issuance of bonds. He will be guided regarding opening of CDC account.

    — In case the bond holder wants to sell / transfer the bond, the buyer / transferee should also have a CDC account.

    — At the end of maturity period, FBR shall pay the amount due under bond i.e. face value plus profit to the bond holder.

    — If FBR decides, it can pay the amount due under bond to the bond holder including profit before maturity. This option is available only to FBR.

    — The bond holder shall have to pay nominal fees to CDC on transfers / custody as provided in CDC schedule available at its website.


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  • Option of refund through bonds can be availed by March 25: FBR

    Option of refund through bonds can be availed by March 25: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has asked sales tax refund claimants to avail option of bonds by March 25, 2019.

    “Those who wish to be included in the first phase of bond issuance may furnish their options by March 25, 2019,” the FBR said in a notice on Thursday.

    The FBR said that in order to facilitate exporters and other businesses, it has been decided to issue them sales tax refund bonds in the Sales Tax Act, 1990 for this purpose:

    The bonds shall be tradeable, SLR eligible and shall act as collateral for getting bank loans.

    The bonds also carry simple profit of 10 percent per annum over three-year maturity period.

    The FBR said that those claimants willing to get refund payment through bonds may furnish their options.