Sales tax refund payment falls by 70 percent in last year

ISLAMABAD: Federal Board of Revenue (FBR) has issued only Rs21.16 billion as sales tax refunds during last year which is 70 percent less than the preceding fiscal year.

According to FBR’s Year Book 2018-2019, the revenue body had issued sales tax refunds amounting to Rs21.16 billion as against Rs70.5 billion in the preceding fiscal year, which recorded 70 percent decline.

It is worth mentioning that the exporters are criticizing the FBR for holding their amount in the shape of sales tax refunds. The stuck up liquidity has created serious financial challenges to undertake production activity.

The overall release of refunds and rebate registered 21.4 percent decline during the past fiscal year.

The FBR issued rebate and refunds worth Rs121.63 billion during fiscal year 2018/2019 as compared with Rs154.72 billion in the preceding fiscal year.

The issuance of refunds in direct taxes recorded 21 percent growth to Rs83.89 during the last fiscal year as compared with Rs69.46 billion in the preceding fiscal year.

The FBR issued Rs16.57 billion as customs duty rebate during the last fiscal year, which was 12.3 percent higher than Rs14.75 billion in preceding fiscal year.

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