ISLAMABAD: The Federal Board of Revenue (FBR) has never stopped payment of sales tax refunds under the FASTER system during the months of January and February 2023, but paid Rs 45 billion to the exporters despite slow processing system.
In a brief to the Senate Standing Committee on Finance on Monday, the tax authorities informed the sanctioning of FASTER refunds has remained slow but never been stopped in the month of January 2023.
In the month of February 2023, due to system upgradation by the Pakistan Revenue Automation Limited (PRAL), the taxpayers have faced difficulties in filing of their refund claims which are being fixed and subsequently issues have been resolved. The FBR was responding to the query of the Finance committee whether the sales tax refunds were stopped since January 6, 2023 under the Sales Tax e-Refund System (FASTER).
Exporters detect ‘flaws’ in FBR’s new refund procedure
The FBR has dispelled the impression created by certain exporters that the refund payments under the FASTER system has been total stopped during January and February 2023.
The FBR informed the committee that the FASTER refunds were disbursed in routine in the month of January 2023 and February 2023. During January 2023, Rs 25.6 billion has been paid to the claimants through the FASTER stream and in the month of February 2023, Rs 19.3 billion has already been paid to the refund claimants.
According to the FBR’s latest data, the FBR has paid a total amount of refunds of around Rs 45 billion during January 2023 and February 2023.
As far as non-FATSER system is concerned, the FBR has paid refunds of Rs 1.4 billion to the exporters under the non-FASTER system during February 2023.
The FBR documents further revealed that the total amount of pending refund claims of Dawlance Pvt Ltd from tax year 2014 to 2022 stood at Rs 1,081 million. The company has been assured by the FBR that all refund payments will be issued as soon as the verification process is completed.
Copyright Business Recorder, 2023