Government considering clearing outstanding amounts of duty drawback
The government is seriously considering clearing outstanding amounts of duty drawback of exporters including Drawback of Local Taxes and Levies (DLTL) scheme through issuance of bonds from the FBR Refund Settlement Company (Private) Limited.
Sources said that a meeting was held at the Finance Division to discuss the issue of settlement of outstanding claims under the scheme of duty drawback of taxes order 2017-18 through FBR Refund Settlement Company (Private) Limited.
The government intends to expedite release of verified refund claims of around Rs 36 billion on account of DLTL drawbacks.
On issuance of promissory notes for release of refunds, sources said that so far 78 sales tax refund claimants opted for Rs 15 billion bonds.
FBR Refund Settlement Company (Private) Limited, registered with the Securities and Exchange Commission of Pakistan (SECP), has been empowered to pay sales tax refund bonds to exporters having bonds values in multiples of Rs 100,000.
The sales tax refunds payable may also be paid through sales tax refund bonds to be issued by FBR Refund Settlement Company (Private) Limited, in book-entry form through an establishment licensed by the Securities and Exchange Commission of Pakistan as a central depository under the Securities Act, 2015, in lieu of payment to be made through issuance of cheques or bank debit advice.
The Board shall issue a promissory note to FBR Refund Settlement Company Private Limited (company), incorporating the details of refund claimants and the amount of refund determined as payable to each for issuance of sales tax refund bonds, hereinafter referred to as the bonds, of the same amount.