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Jun 02, 2020 PRINT EDITION

ISLAMABAD: Federal Board of Revenue (FBR) Chief Sales Tax and Federal Excise (Policy) Hamid Memon said Thursday that the FBR will shortly start payment of sales tax refunds of around Rs 15-20 billion per month to the five export oriented sectors in the next 1-2 days through the FASTER system.

Addressing a press conference at the FBR House on Thursday, Hamid Memon said that the FBR has fulfilled the promise of the business community of speedy payments of refunds under the new system. After withdrawal of the sales tax zero-rating facility on local sales, the major apprehension of the business community was timely payment of refunds.

As soon as refund claimant files annexure-H (stock statement) with the sales tax return, the FBR will start possessing of refund claims through the FASTER system and amount would be credited directly into the exporters account within 72 hours.

Under the new system notified by the FBR, the FBR will issue next batch of sales tax refunds to exporters of five export-oriented sectors by electronically communicating Refund Payment Orders (RPOs) to the State Bank of Pakistan within 72 hours of submission of claim for onward advice to banks for credit into the claimants' bank accounts.

According to the FBR, the refund payment order (RPO) of the amount found admissible shall be generated and the same shall be electronically communicated direct to the State Bank of Pakistan, within 72 hours of submission of claim, for onward advice to the respective banks for credit into the notified account of the claimant. In case of refund claim of a commercial exporter, the payment of such refund shall be made after the realisation of export proceeds.

Copyright Business Recorder, 2019