The Overseas Investors Chamber of Commerce and Industry (OICCI) has asked the Federal Board of Revenue (FBR) to resolve all cases of pending tax refunds which have increased by 15 percent to Rs. 93 billion.
Businesses have routinely accused tax authorities of collecting and withholding more taxes than were due in order to meet revenue targets. The OICCI recently shared with the FBR an exhaustive list of tax refund claims, while demanding that the process should be “institutionalized”, reported Dawn.
According to the list of tax refund claims shared by OICCI with FBR via letter, Hub Power Company Limited is the most affected entity. It is owed Rs. 9 billion in income and sales tax refunds. K-Electric is second on the list, with Rs. 8.6 billion in outstanding sales tax refunds.
Other claims on the list for Frieslandcampina Engro Pakistan Limited, Engro Polymer and Chemicals Limited, and Procter and Gamble Pakistan Limited amount to Rs. 6.4 billion, Rs. 3 billion, and Rs. 2.4 billion, respectively.
According to OICCI, more than 57 percent of all outstanding refund claims are for income tax, with the remainder for sales tax.
The OICCI urged the regulator to direct the relevant FBR commissioners to review all pending refund cases and arrange for early settlement of valid refund cases in order to ensure that all issues are resolved peacefully.