ISLAMABAD: In order to facilitate businesses / exporters whose refund claims are pending with 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.