ISLAMABAD: The Federal Board of Revenue (FBR) paid income tax refunds of Rs 5.142 billion during first six months (July-December) of 2021-22 against Rs 7.279 billion during the same period of 2020-21, reflecting a decrease of 29.4 percent.

According to the FBR’s data on refunds for 2021-22, the FBR paid sales tax refunds of Rs 123.495 billion during the first half of 2021-22 against Rs 98.125 billion during July-December (2020-21), showing an increase of 26 percent.

The FBR has paid customs duty drawback/rebates of Rs 19.889 billion during first six months of 2021-22 against Rs5.893 billion during the same period of 2020-21, reflecting an increase of 237.5 percent.

According to the FBR’s report, As compared to corresponding period last year, 34% higher refund has been paid to the refund claimants. During, first half of 2021-22, in customs around 238% and sales tax around 26% higher refunds were paid.

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The FBR is following a policy of greater facilitation to the business community through speedy and timely payments of refunds to resolve their liquidity issues.

This will not only enhance taxpayers’ confidence but will contribute in improving the overall business environment in the country, leading to greater investments and higher capital inflows, the FBR added.

Copyright Business Recorder, 2022