MULTAN: The Multan Tax Bar Association (MTBA) has urged the Federal Board of Revenue (FBR) to address the limitations imposed on the FASTER-based sales tax refund processing system, citing concerns over the disparity in refund caps for different sectors.
In a formal representation to the FBR Chairman, the association highlighted that exporters outside the previously zero-rated sectors currently face a cap of 3 percent of export proceeds, while those within the erstwhile zero-rated sectors benefit from a 12 percent limit. This discrepancy, they argue, creates an uneven competitive environment and forces many exporters to resort to manual refund processing, leading to delays and working capital constraints.
The association has proposed that the FASTER-based refund processing limit be increased to 12 percent for all exporters to ensure equitable treatment across sectors. “This adjustment will provide much-needed relief to exporters and support economic growth by improving liquidity in the sector,” the statement read.
The letter has also been forwarded to the Federal Minister of Finance and Revenue, as well as the Chief Commissioners of Inland Revenue in RTO and LTO Multan.
Exporters and industry stakeholders of South Punjab have long demanded a streamlined refund mechanism to ease financial pressures and improve cash flow. The FASTER system, introduced to expedite sales tax refunds, has been a positive step, but sector-based limitations have been a point of contention.
Industry experts believe that revising the refund cap would enhance Pakistan’s export competitiveness, particularly in light of global economic challenges. Whether the FBR will consider the proposal remains to be seen, but exporters are hopeful that a policy revision will address their concerns.
