ISLAMABAD: There was considerable increase in sales tax refunds payment during the first six months of the current fiscal year with Rs99 billion payment as compared to Rs31 billion for the same period of 2019-20, reflecting an increase of Rs68 billion.
According to the documents of the Revenue Division, sales tax refunds payment also increased significantly as Rs93 billion payment was made through the FASTER system during the period under review compared to Rs11 billion during July-December (2019-20).
Total sales tax refunds of Rs11 billion were made through FASTER system during July-December 2019-20 and Rs20 billion through non FASTER system.
In the first six months of the current fiscal year (2020-21), Rs93 billion sales tax refunds were paid through the FASTER system and Rs6 billion through non FASTER system.
There are pending sales tax refunds of Rs187 billion as on January 1, 2021 as Rs96 billion claims of tax year 2020 and Rs52 billion for previous years’ claims were pending.
Total income tax refunds stood at Rs313 billion as on December 31, 2020 after clearance of over Rs95 billion between July 1, 2020 and December 31, 2020.
The refund data further revealed that the total income tax refund balance was Rs379 billion on July 1, 2020 against 129,379 claims.
The government made payment of Rs40 billion through Technical Supplementary Grants (TSGs) against 17,238 claims while Rs7.27 billion payment was made from revenue collection against 6,047 claims.
Additionally, an amount of Rs47 billion refund was adjusted against 1,462 claims, and Rs22 billion income tax refund claims were rejected.
An amount of Rs0.18 billion income tax refund was paid against court/FTO and miscellaneous orders.
The tax authorities received new tax refund applications of Rs24 billion for previous tax years against 3,912 claims while refund applications filed for tax year 2020 stood at Rs26 billion.
As on January 1, 2021, a total of 110,072 income tax claims were pending under the slab of below Rs50 million; 248 claims pending between Rs50 million and Rs75 million; 118 claims were pending under the slab of Rs75 million and Rs100 million, and 435 refund claims were pending under the slab of above Rs100 million.
Copyright Business Recorder, 2021
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