The workers welfare fund (WWF) has been segregated from other taxes being collected by the Federal Board of Revenue (FBR).
In a clarification, issued while taking into account the observations made by Federal Tax Ombudsman, FBR said that WWF is collected by the officers of Inland Revenue from the industrial establishments @ 2 percent whose total income is not less than Rs. 500,000.
The mode of payment and recovery from industrial undertaking is mentioned in Section 4 of the Workers’ Welfare Fund Ordinance, 1971. The said amount is paid by the industrial establishment on or before the date prescribed for filing of return and proof of payment is furnished to the concerned officer, if the officer does not agree with the working of the industrial establishment, shall pass an order by taking into account the amount paid by before the date specified in the order.
Similarly, the excess amount shall be refunded by the concerned officer to the industrial establishment. The amount of tax and WWF should be bifurcated. WWF that is refundable should be refunded from the WWF account only.