The Federal Board of Revenue has ordered the payment of Rs. 126 billion in pending sales tax refunds and duty rebates to businesses within two to three months.
The decision was disclosed by Saquib Fayyaz Magoon, Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry, after a meeting with FBR Chairman Rashid Mahmood Langrial on Tuesday.
The meeting, held under the prime minister’s directive for monthly meetings with Karachi’s business community, discussed both deferred and older pending refunds. Deferred refunds had already been scheduled for payment within one to two months.
According to Magoon, the pending amount includes around Rs. 83 billion in sales tax refunds and Rs. 43 billion in duty rebates. He said the FBR chairman directed that both amounts be cleared within two to three months.
The meeting also discussed difficulties faced by exporters under the Export Facilitation Scheme. Magoon said the 10 percent value addition requirement applies to finished goods exports rather than imported industrial raw materials. Export consignments will not be stopped solely because the required value addition is not reflected initially, with the relevant details to be reviewed afterward.
The business community also raised concerns over pre arrival goods declarations, saying banks’ funds identification requirement often forces importers to arrange payments at the last moment. Magoon said the FBR agreed in principle to check the requirement at the out charge stage to encourage pre arrival filings and reduce clearance times.
FPCCI also called for faster resolution of classification disputes. Magoon said the FBR chairman ordered the period to be reduced from 120 days to 90 days.
The meeting also agreed to address tax exemption issues under the Fifth Schedule, expedite low risk sales tax registrations within one week and speed up high risk registrations after verification through relevant business associations.
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