KARACHI: Tax refunds owed to foreign firms operating in Pakistan by the government have reached a massive Rs79.9 billion as of July 2022 owing to prolonged foot-dragging on the settlement, industry officials said on Wednesday.
“Delayed settlement of legitimate tax refund claims, in some cases pending for several years, negatively impacts existing and future FDI (foreign direct investment) in the county,” Overseas Investors Chamber of Commerce & Industry (OICCI) noted in a letter to Chairman Federal Board of Revenue (FBR).
The representative body of the foreign investors pointed out that total outstanding income and sales tax claims increased by Rs3 billion to Rs79.9 billion in July from Rs77 billion in April this year.
According to the list of claims submitted with FBR for the companies based in Karachi, Hub Power Company has a total outstanding refunds of Rs8.9 billion, followed by K-Electric’s Rs8.5 billion.
Frieslandcampina Engro Pakistan Ltd’s (formerly Engro Foods) outstanding claims stand at Rs6.1 billion followed by Procter and Gamble Pakistan (Pvt) Ltd whose claims have reached Rs2.4 billion.
Aisha Steel Mills’ total outstanding claims amount to Rs1.96 billion and Abbott Laboratories (Pakistan) Limited’s to Rs1.89 billion. Tri-Pack Films Limited’s claims are recorded at Rs1.78 billion followed by Standard Chartered Bank with Rs.1.67 billion worth of claims.
Ghandhara Tyre And Rubber Company Limited’s (formerly General Tyre and Rubber Company) claims stand at Rs1.54 billion and Archroma Pakistan Ltd at Rs1.51 billion. Iffco Pakistan (Private) Limited’s claims are reported to be Rs1.35 billion and Siemens Pakistan Engg Co Limited’s Rs1.27 billion.
Among Islamabad-based companies, Pakistan Telecommunication Co Limited’s claims are estimated at Rs9.83 billion, whereas Pakistan Mobile Communications Limited at Rs1.60 billion, followed by Telenor Pakistan and Uch-II Power (pvt) with claims of Rs115 million and Rs85 million respectively.
Among Lahore-based companies, Tetra Pak claims stand at Rs4.87 billion, Nestle Pakistan Limited at Rs3.9 billion, and Coca-Cola Export Corporation’s claims are Rs2.34 billion on account of sales tax and income tax.
Tax refunds should be an ongoing process so as to avoid liquidity issues of our members who continue to pay huge tax on their ongoing business activities, OICCI emphasised in the letter.
KARACHI: Pakistan’s plans to deregulate fuel prices could lead refiners to halt planned upgrades worth up to $6...
KARACHI: The government borrowed a staggering Rs5.301 trillion from banks between July 1, 2023, and April 12, 2024,...
KARACHI: The country's oil production rose 1 percent year-on-year during the first nine months of the current...
KARACHI: The State Bank of Pakistan is expected to delay a rate cut until June and maintain the current monetary...
KARACHI: The rupee fell against the dollar in the interbank market for the second consecutive session on Tuesday.The...
Stock ended slightly lower in a mixed trade on Tuesday, as early gains driven by a rally in the cement sector were...
KARACHI: Habib Bank Limited (HBL), Pakistan’s largest bank by assets, reported a 13 percent increase in its...
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday stressed the importance of adopting...