FASTER-based: Refund processing limit be raised to 12pc, PBC urges FBR

ISLAMABAD: The Pakistan Business Council (PBC) has strongly recommended the Federal Board of Revenue (FBR) to increase the FASTER-based refund processing limit to 12 percent for all exporters, in line with the facilities available to the erstwhile zero-rated sectors.

According to a communication of the PBC to Dr Najeeb Ahmed Member (Inland Revenue — Policy) FBR, the PBC has appreciated the issuance of SRO 1507(1)12024 dated September 24, 2024, which extended FASTER-based sales tax refund processing to all exporters.

However, the PBC had highlighted its concerns regarding the capping of refunds at five per cent of export proceeds for exporters outside the erstwhile zero-rated sectors, while a 12 per cent limit was maintained for those within these sectors.

FBR urged to allow all exporters to avail ST refund facility under FASTER system

The PBC had requested for a revision to align the limit for all exporters to 12 per cent, ensuring a level playing field. Unfortunately, instead of addressing its concerns, the refund processing limit for exporters outside the erstwhile zero-rated sectors has been reduced to three per cent from January 2025.

This change has exacerbated the difficulties faced by exporters, resulting in increased delays, working capital constraints, and administrative burdens associated with manual refund processing beyond the prescribed limit.

In light of the above, we earnestly request that FBR reconsider the existing restrictions and restore parity by increasing the FASTER-based refund processing limit to 12 per cent for all exporters, in line with the facilities available to the erstwhile zero-rated sectors, the PBC added.

Copyright Business Recorder, 2025