President rejects FBR’s review petition in Pak Suzuki Motor refund case

LAHORE: The President of Pakistan, Dr Arif Alvi has stood with his original decision in the Pakistan Suzuki Motor Company (PSMC) sales tax refund case. The President has done so citing the Federal Ombudsman Institutional Reforms Act, 2013 stating “there is no provision in the Act for filing a review against orders of the President of Pakistan passed on any representation”. 

The case pertains to 24 customers demanding they be reimbursed by PSMC on account of the change in sales tax on cars below 1000cc in the  Finance Act 2021. The Act reduced the sales tax on vehicles below 1000cc from 17% to 12.5%. Furthermore, the Sales Tax Act (1990) was amended so that the new tax would be levied at the ‘time of delivery’ rather than at the ‘time of sale’. 

The 24 customers had booked their cars by paying the full amount before the change came into effect but had been delivered their cars after the change. Their invoices showed the revision but they were not reimbursed, upon which they lodged a complaint. 

The Federal Tax Ombusdperson (FTO), Asif Jah, filed a recommendation to Alvi on account of the complaint by the aggrieved 24. Jah suggested the FBR reimburse 4.5% to the customers, to which Alvi agreed in March. The FBR, however, filed a review petition rather than implement Alvi’s verdict. 

Alvi has now given a verdict on the matter and directed the FBR to implement his original verdict by complying with the FTOs recommendation.