Karachi, March 7, 2024 – The Federal Board of Revenue (FBR) has issued crucial instructions to tax offices regarding the expeditious handling of deferred sales tax refund claims.
In a communication addressed to chief commissioners Inland Revenue, the FBR outlined measures to address the backlog of pending claims and prevent further accumulation.
To streamline the process, the FBR has mandated the field formation to adhere to the following guidelines:
(i) Disposal of pending deferred sales tax refund claims communicated by the automated system up to the present date is to be completed by June 1, 2024. (ii) Future deferred claims must be processed and disposed of within one month of the communication of the deferment by the automated system.
This strategic approach aims to efficiently clear the existing backlog and ensure that upcoming deferred sales tax refund claims are promptly addressed. The FBR emphasizes the importance of adhering to these timelines to enhance the overall effectiveness of the refund process.
To reinforce these directives, chief commissioners Inland Revenue have been urged to personally oversee the processing and disposal of deferred sales tax refund claims. It is imperative that these instructions are strictly followed to achieve the desired objectives and prevent any further delays in the reimbursement of sales tax.
This proactive stance by the FBR reflects a commitment to improving the efficiency of the tax refund system, ultimately benefiting businesses and taxpayers. By setting specific deadlines for the resolution of pending claims and future deferments, the FBR aims to create a more transparent and accountable process for the benefit of the business community.
As tax offices work towards meeting these deadlines, the FBR anticipates a reduction in the backlog of deferred sales tax refund claims, leading to a more responsive and streamlined system. The FBR’s emphasis on personal oversight by chief commissioners Inland Revenue underscores the gravity of the situation and the need for a hands-on approach to ensure compliance.
Businesses and taxpayers are hopeful that these measures will result in a more expeditious and predictable tax refund process, contributing to a favorable business environment. The FBR’s commitment to continuous improvement in its operations is a positive step towards fostering a more business-friendly taxation system in Pakistan.
