Strict compliance of instructions relating to issuance of Sales Tax refund

Islamabad, May 16, 2013 (PPI-OT): Commenting on the efforts being made by the interim government to improve tax collection without delay, the Spokesman to Prime Minister’s Advisor on Finance informed that in pursuance of orders given by the Advisor, the Federal Board of Revenue had directed all Chief Commissioners of Large Taxpayers Units and all Chief Commissioners of Regional Tax Offices in the country to ensure strict compliance of instructions relating to the issuance of sales tax refunds.

The Spokesman said that under the provisions of Section 153 (7) of the Income Tax Ordinance 2001, sales tax registered persons, including companies and exporters as well as individuals and associations of persons having turnover above Rs. 50 million, were prescribed withholding agents for income tax, and that the Federal Board of Revenue, vide its circular dated 15th May 2013, had directed all Chief Commissioners to ensure that: (i) at the time of processing and scrutiny of sales tax refunds, all registered persons had fulfilled their legal obligations as withholding agents against payments made to their suppliers; and that (ii) a certificate to this effect had been placed on file before payment was sanctioned in any refund case.

The Spokesman said that the Government was confident that strict enforcement of the withholding provisions would be an effective check on bogus claims of sales tax refunds.

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326
Email: piopid@gmail.com