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PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION

PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi. Tel: 0092-21-34522769, 34522685, 34544765

Fax: 0092-21-34543774, E-mail: info@phmaonline.com 

Ref. No. PHMA/Cir-007/2019
Dated: 24th January, 2019

To: All Members of the Association (Southern Zone)

RPOs against all claims: Refund bonds must be issued by February 14, taxmen told

Please find herewith important NEWS CLIPPINGS of Business Recorder dated 26 January, 2019 captioned "Refund bonds must be issued by Feb 14, Taxmen told" for your perusal.

The Federal Board of Revenue (FBR) has directed field formations to urgently issue Refund Payment Orders (RPOs) of admissible sales tax refund claims or reject inadmissible claims before issuing the first batch or promissory notes (refund bonds) by February 14, 2019. The FBR has issued instructions to all Chief Commissioners of Large Taxpayer units and Regional Tax Offices Friday.

The FBR instructions to the field formations are related to the sales tax refund liquidation.

According to the FBR, the government intends to clear existing sales tax refund pendency by the end of this year through issuance of promissory notes. First batch of promissory notes is to be issued by 14th February, 2019 as announced by the finance minister in his speech on January 23, 2019 while tabling the Finance Supplementary (2nd Amendment) Bill, 2019. However, the data of refund payment orders (RPOs) as generated after the issuance of aforesaid letter dated 20.12.2018 reveals that 2,274 RPOs have been generated involving an amount of Rs 7.912 billion which is not found satisfactory. Till data, existing pendency still shows huge outstanding amounts as attached. Further, the progress reports as sought vide Board's letter dated 31.12.2018 have not been received.

All field formations are once again advised to expedite processing of pending sales tax claims through STARR and reduce the refund pendency by half through generation of RPOs for admissible amount and rejection of inadmissible amounts by 10th February 2019. A detailed progress report in the matter may be furnished to the Board by January 31, 2019, the FBR added.

Copyright Business Recorder, 2019

Thanks & Best Regards,