ISLAMABAD: Federal Board of Revenue (FBR) has directed tax offices to dispose all pending refund claims by July 31, 2021.
The FBR also facilitated exporters by enhancing risk parameters for release of sales tax refunds.
In a letter to all chief commissioners of Inland Revenue, the FBR said that it had been decided to enhance refund risk parametric check from 12 percent to 15 percent of export value in cases of partially-integrated manufacturing concerns and commercial exporters.
The process for the purpose is:
That, all exporters would continue to file their refund claims through FASTER module;
That, refund claims up to 12 percent of export value will be automatically processed by FASTER system;
That, any amount exceeding 12 percent will be deferred and marked to the field office concerned for processing and sanctioning;
That, field offices will thoroughly scrutinize the claim to ascertain its admissibility and genuineness;
That, after satisfying themselves as regards the admissibility and genuineness of the refund, filed officers will sanction the refund whereby RPOs shall appear in CSTRO’s payment system in a separate especially earmarked stream;
That, CSTRO will release payment in all genuine cases falling within the range of 12 percent to 15 percent of export value;
That, no refund claims beyond 15 percent of export value would be sanctioned / paid under any circumstances.
The FBR said that all cases marked to the field involving higher refund-to-export ratio, by their very nature, are to be taken as high risk cases, and put to stringent levels, of both pre and post-refund audit so as to optimally safeguard the exchequer against any undue release on this account.
Further, the FBR directed all field formations to speedily dispose of all pending cases either accepting or rejecting the refund, but no claim, on whatever count, be kept pending beyond July 31, 2021.