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Finance sanctions

Rs 15bn to clear

IT refunds backlog

MUZAFFAR QURESHI

KARACHI: The Ministry of Finance has sanctioned Rs.15 billion to clear backlog of income tax refunds accumulated over the years. The Income Tax department has also been instructed to make payment in 90 days in cases where the refund has been determined.

This was stated by Finance Minister, Shaukat Aziz, at a meeting with a delegation of bedwear industry led by Shabir Ahmed, chairman, Pakistan Bedwear Exporters Association.

Giving details of the meeting, Shabir Ahmed said that the delegation informed the minister that the established and assessed refunds of assessees were blocked for years and no attention was paid by the revenue collectors to refund the amounts.

The minister agreed with the plea made by the delegation that the tax on reserve funds of public companies would adversely affect the growth of capital in the country and said that the Ministry of Finance was considering amendment in the rule.

The delegation complained that the NIT is not helping companies to go public by floating shares in the market and has started raiding companies like common share market manipulators. In the process of their raids on the companies, the NIT is pressurising management to buy back share at their dictated price.

Shaukat Aziz assured the delegation that the government would look into the role of NIT and stop it to interfere in the companies internal affairs.

The delegation emphasised the need of appreciating the role of local investors and suggested that domestic investors should be given respect and due recognition without which foreign investors could not be attracted.

The delegation pointed out that the size of national economy did not at all justify monopoly controls and its practice. Pakistan is not a merging society trying to build up financial giants. On the contrary, it is a divisional society where family businesses invariably are divided but in the eyes of monopoly act, two competing brothers are clubbed together, father and son having no control on each other are termed to be controlling.

The minister agreed to arrange a meeting between the bedwear industry and the Monopoly Control Commission to look into their grievances.