NA body directs FBR to expedite payment of refund claims
ISLAMABAD: The Standing Committee on Finance, Revenue and Economic Affairs of the National Assembly Thursday directed Federal Board of Revenue (FBR) to expedite payments of refund claims of the exporters and traders.
The meeting which met here under the chairmanship of Faiz Ullah, pointed out that the refund payments were not being made for several months causing liquidity problems specially for exporters.
Discussing the agenda regarding issues being based by textile exporters/importers, textile industries and traders relating to refunds and Computerized National Identity Card (CNIC) conditions, MNA Ali Pervaiz demanded that the refund payment system must be made effective and transparent by eliminating discrimination in the refund processing system.
He also demanded restoring the zero rating facility for five export oriented sectors, saying that this facility would help boosting the country’s exports.
MNA Qaisar Ahmed Shaikh said the conditions of CNIC and revoking zero rating sectors were not practical as there were numerous complications in the procedures.
Member IRS FBR, Seema Shakeel in response said that maximum cases of refunds had been accommodated, however, only those cases were pending where requirements were not met properly.
She also presented the month-wise data regarding release of refunds up to December 2019.
She informed that the FBR had cleared 97.7 percent refunds of July 2019, 95 percent of August and 90 percent each of September, October, November and December 2019.
She informed that a committee comprising of exporters and senior officers from FBR was appointed to resolve the technical problems of Form “H” and they have completed their assignment.
However, the exporters were of the stance that they would not be able to continue their business, due to stuck up refunds with FBR for last six months.
The exporters also highlighted the weaknesses of Faster’s Refunds System and requested the Federal Board of Revenue to address the same at the earliest for smooth functioning of export industries in Pakistan.
She also responded the queries raised by exporters with regard to the meeting held on February 11, 2020 in the office of RTO, Karachi, she informed that mostly grievances pointed out in said meeting had been resolved by the FBR.
After threadbare discussion, the Committee reiterated that refunds issues should be resolved on priority basis.
The committee also discussed the matter regarding encashment of security of Reliance Petroleum Industries (Pvt.) Limited by the Customs authorities.
Chief Collector Customs (Karachi) informed the committee about the current status of the matter.
After deliberations, the committee advised collector customs (Karachi) to resolve the matter amicably before the meeting of the Sub-Committee of the Standing Committee on Finance, scheduled to be held on March 17.
While considering the problems being faced by the Real Estate Sector due to anomalies created by the FBR in valuation table on immovable properties. – APP