Pak Suzuki Ordered to Refund Excess Sales Tax to Buyers
In a fresh order, Federal Ombudsman (FTO) has ordered to Large Taxpayer Office (LTO) Karachi to refund overcharged General Sales Tax (GST) on Suzuki vehicles to the Bank of Punjab (BOP). In this regard, FTO issued a notification against Pak Suzuki yesterday.
As per the notification, the complaints were filed under Section 33 of FTO Ordinance, 2000, by the BOP alongwith copy of NOC from the buyer of Suzuki cars through the lease. The BOP filed the complaints on behalf of the buyers seeking relief against charging a higher rate of sales tax by Suzuki Pakistan.
As per the notification, BOP booked these cars under 17% GST. However, the GST on cars upto 1,000cc was reduced to 12.5%, while Federal Excise Duty (FED) was waived by the government. “Although the company waived off FED, it charged 17% GST, applicable from booking time, instead of 12.5% applicable at the time of delivery,” the notification read.
BOP then filed an application to refund the differential amount of GST, as per the rate applicable at the delivery time.
Resolution of Sales Tax Issue
Per the notification, FTO, LTO Karachi, and Pak Suzuki have implemented an efficient strategy. “No further investigation is needed as the petitioner is entitled to the relief sought by him,” the order read.
In its final decision, FTO wrote, “In view of the above, LTO Karachi is ordered to extend relief to BOP.”
You can read the complete order by FTO, here.
Pak Suzuki Statement
PakWheels.com contacted Pak Suzuki for its point of view on this case; however, the company hasn’t answered our query. We will add its statement once we receive one.
It is pertinent to mention that the company faced similar cases in the past, and it was resolved after President Alvin ordered to pay the extra charged GST amount to consumers.