FBR Reviews Sales tax reimbursements parametric reimbursement ratio

From the former 12% to 15% of the export volume, the Federal Board of Revenue (FBR) has re-fixed the cap to process the industrial export exporter's sales tax refunds.

The FBR has given here on Friday a General Tax Order (STGO) 05 of 2021.

The FBR Notice stated that the FBR has revisited the ceiling on parametric refund ratio from the previous 12 per cent to the export value of 15 percent in respect of the handling of sales tax refunds by commercial exporters, including exporters who do not have a manufacturing facility, in exercising the powers conferencedone by Rule 39C of the sales tax regulations of 2006.

The notice shall add that the cumulative limit of the allowable refund processed by the device 'FASTER' against legitimate exports is the maximum ceiling after the certification of the export proceeds according to the law.