ISLAMABAD: Modernized technologies adopted by the Federal Board of Revenue (FBR) have sped up the process for the sales tax refunds to the importers and exporters.
Furthermore, these technologies have also reduced the time duration for the completion of this process. Now the refund payment order (RPO) for a verified amount of a claim in such cases is generated in 24 hours without any human intervention.
To further expedite the refund payments, the FBR started paying sales tax refunds by direct electronic transfer through State Bank of Pakistan instead of payment through cheques delivered by courier companies.
“In last two and half financial years, FBR has processed some 35138 refund cases and disbursed some Rs 71432 million among the claimants” a well-placed source shared data with Customs Today on Monday.
“In fiscal year 2015-16 total number refund cases processed by the FBR was 29641 and total Rs33455 million were paid. Similarly, in the very next fiscal year, 2016-17, number of refund cases processed by the FBR was 2321 and an amount of Rs 10822 million was paid” the data showed.
It further revealed that in the first half of the current fiscal year, FBR paid Rs27155 million by processing 3176 refund cases. It showed that substantive amount of refund has been paid during the current financial year indicating disposal of huge refund pendency.
However, the source further guided this scribe about the reasons for delayed refund payment or pendency of claims, saying that claims of refunds which have not been furnished on the prescribed software (RCPS) along with supportive documents within stipulated time.
Similarly, another reason for the delayed payment of refunds as per source is that the claims have been deferred, or withheld due to legal objections raised by the sales tax automated refund repository (STARR).
