SBP introduces automation of tax refunds project

KARACHI: Governor State Bank of Pakistan (SBP) Dr Reza Baqir held an online meeting with the business community to seek feedback on an ongoing project of automation of payment of tax refunds.

The meeting was attended by the office-bearers of Pakistan Business Council (PBC), Federation of Pakistan Chambers of Commerce and Industries (FPCCI) and Chambers of Commerce and Industries of various cities.

Governor SBP introduced the project for the automation of government’s revenue collections and said efforts being made to automate the government’s payments to ensure transparency, efficiency and public convenience. He said that improving ease of doing business is one of the shared goals of the government for its significant impact on boosting economic activity in the country.

Governor Baqir remarked the project is a part of the central bank’s efforts in collaboration with Federal Board of Revenue (FBR) and Pakistan Customs. He added that it is important that the system is developed in consultation with all stakeholders including businesses.

A senior SBP official gave a detailed presentation on the project elaborating that the project constituted two broader components, automation of payment of duty drawback claims and the automation of payment of sales tax refunds.

He highlighted the issues in the existing mechanisms and explained how automation will simplify the processes and bring efficiency in terms of time saving and human resources.

He said that there will be minimal human intervention in processing and payment of refund claims as the system generated payment messages will be sent to the central bank on real time basis through an interface between FBR/Pakistan Customs and SBP for crediting the funds in the claimants’ account.

The representatives of Chambers of Commerce appreciated the initiative and provided feedback.  They also assured their cooperation to SBP in the development of this project of national importance.