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FBR will refund Billions of rupees to 9,000 car customers

FTO Dr Jah Rejects FBR’s proposal to refund only to NTN holders


ISLAMABAD: The Federal Board of Revenue and the Federal Tax Ombudsman have agreed on a mechanism to refund the additional tax of 9,000 Suzuki cars worth tens of billions of rupees. In this regard, under Section 66 of the Income Tax Ordinance, Pak Suzuki Company will file a refund claim on behalf of 9000 customers. The FBR will issue refunds to Suzuki Company for all relevant customers and Suzuki Company will refund the additional taxes to each customer. Earlier, the FBR had proposed to refund additional tax only to NTN number holder customers, which was rejected by the FTO۔

It may be recalled that FBR had levied 17% sales tax instead of 12.5% on cars less than one thousand cc. FBR Refused to provide relief for a reduction of up to 12.5%. Consumers from all over the country including Lahore, Karachi, Islamabad, Gujarat, Gujranwala, Multan and Faisalabad sent complaints to Federal Tax Ombudsman Dr. Asif Mahmood Jah. Dr. Asif Mahmood Jah issued an order stating that the position of FBR and the company concerned that sales tax on cars would be levied on the basis of time of booking. The FTO ordered the car company and the FBR to collect the tax according to the time of delivery.

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