FBR releases Rs56 bn tax refunds

ISLAMABAD: The Federal Board of Revenue (FBR) has so far sanctioned Rs56 billion against tax refunds claims of Rs59 billion through FASTER system during first nine months (July-March) period of the current fiscal year.

The FBR on Wednesday released the information about refund claims sanctioned through FASTER (Fully Automated Sales Tax e-Refund) system developed for quick processing of refunds due to exporters.

Since July 2019, Refund Claims amounting to Rs59 billion have been filed and the FBR has sanctioned Rs56 billion, which comes to around 95 % of the claimed amount. During the month of March, the FBR has sanctioned refunds of Rs25 billion approximately to exporters.

FASTER is a fully automated system which uses a Risk Management System for processing Sales Tax Refunds without human interference. FASTER is operational for the tax periods July and onwards. The FBR strives to make timely payment of Refunds to exporters so that they don’t face any liquidity issue.

According to FBR’s data, in first seven months (July-Jan) period, total 7,965 cases were filed for obtaining sales tax refunds with the claim amount of Rs56.86 billion. The FBR sanctioned amount of Rs51.221 billion. The amount of Rs5.685 billion still remained deferred in 954 cases.

The FBR has received sales tax refunds cases in all months as it got 1,133 cases in July, 1,313 cases in August, 1,381 cases in September, 1,362 in Oct, 1,204 in Nov, 1,024 in Dec and 548 cases in January of this financial year. The highest claims of refunds were filed in December 2019 when exporters filed tax demand of refunds to the tune of Rs10.8 billion. In July 2019-20 the tax refund claim was just standing at Rs4.090 billion, Rs6.584 billion in August, Rs8.097 billion in September 2019, Rs9.953 billion in Oct 2019, Rs10.612 billion in Nov 2019, Rs10.854 billion in Dec 2019 and Rs7.670 billion in January 2020.