Islamabad, October 11, 2025 – The Federal Board of Revenue (FBR) has issued a clear deadline for taxpayers to claim their sales tax refunds, emphasizing the importance of timely applications.
According to FBR sources, claiming a refund is essential not only for taxpayers but also for ensuring transparency and smooth operations within the tax system.
The FBR has stressed that any sales tax refund claims submitted after the specified deadline will not be accepted. Section 66 of the Sales Tax Act, 1990, states that claims for overpaid or mistakenly paid sales tax must be filed within one year of the payment date. This rule applies to refunds on account of input tax adjustments as well.
In certain cases, the Commissioner may allow adjustments beyond the relevant tax period if it is proven that input tax is due and admissible. Similarly, if a refund becomes due following a decision or judgment by an officer of the Inland Revenue, a court, or a tribunal, the one-year period will start from the date of such ruling.
Once a refund claim is filed, the FBR is required to process it within ninety days. However, no refund is allowed if the tax burden has been transferred directly or indirectly to the consumer.
The FBR’s reminder aims to help taxpayers avoid losing their entitlements and encourages everyone to submit claims promptly. Taxpayers are advised to review their records carefully and file their refund applications within the stipulated timeframe to ensure compliance with the law and to receive their dues without delay. This move reinforces the importance of following regulatory deadlines and helps maintain a transparent and efficient tax system in Pakistan.