Imarat

FBR releases Rs22bn sales tax refunds to exporters

ISLAMABAD: Through the newly installed Fully Automated Sales Tax e-Refund (FASTER) system, the Federal Board of Revenue (FBR) has released Rs22 billion verified sales tax refunds to the exporters.

FBR further informed that the SBP has confirmed the refund credit amount in the bank accounts of claimants.

Furthermore, to protect and promote economic activity and provide liquidity support to various businesses, the government has made decisions on matters related to the tax refund, shared Adviser to the Prime Minister on Finance Dr Hafeez Shaikh.

He added that the verification process for different outstanding refunds is to be expedited, which was decided by the government while announcing the budget.

The income tax refunds between Rs100, 000 and Rs500, 000 for all years will be paid next month.

The FBR has emphasised in an official statement that by August 30, only nine refund claims of five export-oriented sectors were received, and the payment has been made against the claims which were cleared by the FASTER module for the risk management system. Furthermore, FBR has urged the exporters to submit their claims in form Annex-H at the earliest so that their claims can be processed and paid. The number of refund claims received is not significant.

FBR had committed with the exporters of five export-oriented sectors – textiles, leather, carpets, sports goods and surgical goods – that refunds shall be paid to them within 72 hours of filing of the refund claim, as a consequence of the rescission of SRO 1125(I)/2011. To cater to this, the tax body has developed a new IT module called FASTER which has now been operationalised.

FBR had earlier clarified that submission of Annex-H, which is a form in the monthly sales tax return, will be treated as submission of the refund claim.

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