RTOs, LTUs warned against misuse of ERS

The Federal Board of Revenue has directed the Regional Tax Offices and Large Taxpayer Units that any maladministration in the Expeditious Refund System (ERS) will not be tolerated. The FBR here on Saturday issued instructions to the LTUs and RTOs in this connection.
According to the FBR, the issue of the ERS was discussed in detail in the last Chief Commissioners Conference. The FBR has directed the Chief Commissioners of the LTUs and RTOs to take personal note that the ERS works efficiently and successfully." No delay or malpractice should be tolerated," the FBR directive added.
Sources said that the warning of the FBR to the Chief Commissioners of the LTUs and the RTOs clearly reflects that the FBR wanted smooth functioning of the ERS and would not tolerate any kind of corruption in the new refund system. This also shows FBR commitment to make the system corruption free using electronic systems. The FBR directive also indicated that the FBR will take strict action against the officials who would be involved in any kind of the maladministration in the Expeditious Refund System. The Board seemed to be is fully committed to timely provide refunds to the exporters following withdrawal of the zero-rating facility.
The manufacturers-cum-exporters have no other option except to file claims under the ERS. Due to limitations of the exporters, it is very difficult for the concerned sectors to obtain refunds in case of any technical problems in the ERS. The compulsion for the manufacturers-cum-exporters to only file the claims through the ERS has confused them under the current situation.
The manufacturers-cum-exporters were raising a technical objection in the ''Expeditious Refund System'' whereby provision of Mate Receipt (MR) was not available in the system in the past. Later, the system has been improved, resulting in improvement in the processing sales tax refunds under the electronic system.
Sources said that the confirmation of the export of shipment is done by Mate receipt. This receipt is an acknowledgement that the ship-owner has received the export shipment. The exporter has to specify the goods declaration for export indicating Mate Receipt number for processing of refund claims. In the absence of provision relating to MR in the ''Expeditious Refund System,'' refund applications could not be processed electronically.