LHC instructs FBR to streamline tax-refund process

The Lahore High Court (LHC) told the Federal Board of Revenue (FBR) to change the Sales Tax Act of 1990 because some people weren’t getting their sales tax refund on time. This came out in a news article on January 29th.

Read: FBR Establishes A Deadline For The Integration Of Track & Trace In The Cement Industry

The court wants to make sure that people get their tax refunds on time, especially when there’s an audit happening before the refund. This decision came after a fertilizer company complained that the audits by the Revenue Board were not fair. The company also asked for its extra tax money back, but the refund was taking too long even though they followed all the rules.

The Lahore High Court (LHC) said that when there’s a doubt about whether someone should get a refund, the law says we should check carefully before deciding. The court also said the company’s complaint was too early because no bad decisions had been made yet from the audits.

Read: Section 7E Will Not Be Applicable Within The Jurisdiction Of LHC: FBR

The court also told the Revenue Board to follow the law properly. There’s a rule that says audits before refunds should finish in nine months, and the Revenue Board needs permission to take longer. If they don’t follow these rules, it’s unfair to taxpayers according to the country’s constitution.

Stay tuned with RBS for more updates.