ISLAMABAD: The government has stated that 65 percent more refunds have been processed through a centralised automated system during the fiscal year 2019-20 as compared to the preceding fiscal year.
The Finance Division, told a finance standing committee of the National Assembly in a brief submitted for the committee members, that round Rs126 billion refunds had been issued during the fiscal year 2019-20 and those included Rs10 billion income tax refunds, Rs40 billion sales tax refunds, custom duty drawbacks Rs20 billion and Rs26 billion tax relief granted under Prime Minister's COVID relief package.
In addition, the government also issued refunds bonds of Rs30 billion to address the hardship faced by the business community, added the Finance Division.
An official said that the refunds were being disbursed with a speed not witnessed in recent history.
The finance committee was told that sales tax refund processing module had been introduced - fully automated sales tax refund (FASTER) and automated web-based IT system for assets declaration scheme 2019 was initiated, which ensured full transparency and confidentiality.
Under this scheme, Rs65 billion taxes were collected and Rs2.4 trillion assets have been declared.
A mobile web was also developed for facilitating taxpayers for sales tax registration and Urdu translation of various tax-related forms was completed.
The meeting was also told that the Federal Board of Revenue (FBR) was undertaking a series of reforms measures to improve the processes, structure and effectiveness of the board.
The meeting was further told the parliamentary panel that this was being done through focus on automation, organisational restructuring for a leaner, smarter setup and development of an efficient work force by revamping human resource, removing the dead wood and establishing a system of zero tolerance for corruption.
A number of measures have been taken and independent reforms wing has been set up in the FBR to achieve this purpose.
An official said that reforming tax system was critical for broadening of tax base to increase the dismally low tax-to-GDP ratio.
Copyright Business Recorder, 2020
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