FBR Provides Last Deadline to Field Formations to Pay all sales tax refunds pending

The Federal Revenue Board (FBR) granted the field training sessions a final deadline of 31 July 2021 to pay any pending refunds on sales tax reported by the exporters under the FASTER system.

The outstanding requests for refunds from exporters were in the range of billions under the FASTER system, authorities informed Propakistani.

In this respect, the FBR has published directions on the subject of delayed sales tax refund requests, here on Wednesday.

In the case of partially integrated production companies as well as commercial exporters, the FBR wished to express the Board's decision to increase the refund risk parametric checks by 12 to 15 percent of the export value.

1.The approach is to continue to file reimbursement claims by all exporters using the FASTER module.
 
2.The FASTER system automatically processes requests for refunds of up to 12 per cent of the export value.

3. Any sum above 12 percent is postponed and marked for processing and sanction by the field offices involved.

4. Field officers would analyse rigorously the claims for eligibility and authenticity.

5. When it comes to the eligibility and genuineness of the reimbursement, field officers will authorise the reimbursement that includes the reimbursement orders (RPOs) in the payment system of CSTRO in a separate specifically assigned system.

6.In all legitimate situations of 12% to 15% of the export value, the CSTRO releases payments.

7. Under no circumstances will refund requests over 15% of the export value be sanctioned/paid, stated the FBR.

In order to maximally safeguard the exchequer from any excess release on this account, all situations which are marked by their own nature in the field involving an increased refund-to-export ratio must be taken as high-risk cases and put under a strict degree of both pre- and post-refund audition.

Accordingly, all outstanding cases accepting or rejecting refunds must be quickly disposed by the field formations, but no claims, irrespective of the number, remain pending beyond 31 July 2021, added to the FBR.
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