ISLAMABAD: Federal Board of Revenue has made payment of sales tax refunds amounting to Rs.1,17,084 million in 57,309 cases to the claimants during the last two years and current financial year.
During 2015-16, payment of Rs. 50,660 million has been made in 38,217 sales tax refunds cases while 2016-17 payment of Rs 25,683 has been made in 4,724 sales tax refunds case. During 1st July 2017 to 31st March 2018, Rs 40,741 million has paid against the 14,368 sales tax refunds cases.
The FBR has pointed that a substantial amount of refund is pending in deferred claims. FBR claims that almost 58 percent more sales tax refunds disbursed during July 2017 to March, 2018 as compared to refund disbursed during whole financial year 2016-17.
It is pertinent to mention here that sales tax refunds are processed under the provision of Sales Tax Act, 1990 and Sales Tax Rules,2006. FBR has cleared that the FBR has automated system in place for processing of sales tax refunds. For low-risk claim by manufacturers –cum-exporters, FBR has introduced ERS (Expeditious Refund System) for refund claims which meet prescribed risk parameters. The Refund Payment Orders for verified amount in such cases is then generated in 24 hour without any human intervention.
