Islamabad: The Federal Board of Revenue (FBR) has paid bonds in lieu of 4,321 refund payment orders (RPOs) of the refund claimants; clearing all the applications intended to obtain bonds – according to a news source. The department has issued sales tax refund bonds (promissory notes) amounting to PKR 17.03 billion to 689 refund claimants in three instalments valid up to August 2019.
The taxation authority has issued bonds to the claimants who have opened their accounts with the Central Depository Company (CDC). As per the FBR instructions, the claimants without CDC accounts need to provide the department with one to get their applications accommodated.
The bonds are issued by FBR Refund Settlement Company Limited in Central Depository System (book-entry form) against Refund Payment Orders as issued in favour of the claimants under Section 67A of the Sales Tax Act 1990.
For sales tax refund payment through bonds, the FBR has issued procedure for opening of CDC investor accounts. Moreover, it recently launched a Fully Automated Sales Tax e-Refund (FASTER) system for exporters for sales tax refunds payments and will process the next batch of refunds. The FBR’s database shows that pending sales tax claims now stand at PKR 90-120 billion.
At present, the federal institution is receiving applications for issuance of income tax refund bonds.