FBR to Refund Over 2% Workers Welfare Fund to Industrial Undertakings

FBR has taken a significant step by returning 2 percent of the excess Workers Welfare Fund (WWF) collected from industrial operations.

The Member Legal and Member Inland Revenue (Operations) have received instructions from the FBR.

The Workers Welfare Fund (WWF) is collected by the officers of Inland Revenue from industrial establishments at a rate of 2% whose total income is not less than Rs. 500,000, according to the FBR’s directives.

According to the FBR, section 4 of the Workers Welfare Fund Ordinance of 1971 stipulates the method of payment and collection from the industrial undertaking. The industrial firm pays the specified sum on or before the deadline for submitting a return, and it provides the relevant officer with proof of payment.

The industrial establishment must pay the amount due on or before the date mentioned in the order if the officer issues an order while not agreeing with how the industrial establishment is operating, according to FBR.

Similar to that, the concerned officer must reimburse the extra money to the industrial establishment.

The FBR further stated that there should be a separation between taxation and WWF. In addition, FBR’s guidelines stated that any refundable WWF should only be refunded from the WWF account.

Written by Aly Bukshi

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