The Risk Management System (RMS) of the Federal Board of Revenue (FBR) plays a central role in ensuring transparent, automated, and risk-based processing of sales tax refund claims in Pakistan. For tax year 2026, refund claims are no longer processed manually; instead, they are evaluated through FBR’s computerized RMS under Rule 29 of the Sales Tax Rules, 2006.
This article explains how RMS routes refund claims, the difference between FASTER and STARR, and what taxpayers should expect after filing a refund claim.
🔍 What Is FBR’s Risk Management System (RMS)?
RMS is an automated screening mechanism that:
• Evaluates refund claims based on risk parameters
• Reduces human intervention
• Ensures quick payment to compliant taxpayers
• Flags risky or incomplete claims for further scrutiny
Once a refund claim is filed through the monthly return, it automatically enters the RMS.
🔀 How RMS Routes Refund Claims
Under Rule 29(1), RMS routes refund claims into two processing channels:
🚀 1. FASTER – Fully Automated Sales Tax e-Refund System
• Applies to low-risk, compliant taxpayers
• Governed under Chapter V-A of Sales Tax Rules
• Refunds are processed without manual involvement
• Faster release of funds directly to the taxpayer’s bank account
🗂 2. STARR – Sales Tax Automated Refund Repository
• Applies to claims not qualifying for FASTER
• Used for high-risk or partially verified claims
• Processed under Rule 30
• Involves deeper scrutiny and verification
👉 Interactive Insight: Entry into FASTER depends on clean filing history, data consistency, and low risk indicators.
⚙ Weekly Validation Process Under FASTER
According to Rule 29(2):
• RMS conducts system validation checks every week
• Any verified and admissible portion of the refund is approved
• A Refund Payment Order (RPO) is generated for the approved amount
• The RPO is:
o Communicated to the taxpayer
o Shared with the relevant RTO or LTO
o Forwarded to the State Bank of Pakistan (SBP) for payment
📢 Objections or discrepancies, if any, are also communicated electronically.
🔁 What Happens After Multiple Validations?
• RMS performs eight validation checks, including the initial one
• If any portion of the claim remains un-cleared after these checks:
o The remaining amount is shifted to STARR
o Further processing is done under Rule 30
✔ This ensures partial refunds are not unnecessarily delayed.
⏱ Key Benefits of RMS for Taxpayers
✔ Faster refunds through automation
✔ Partial payments without waiting for full clearance
✔ Reduced human interaction and discretion
✔ Real-time system notifications
✔ Transparent audit trail
✅ How to Improve Chances of FASTER Processing
✔ File accurate monthly returns
✔ Ensure annexures match declared figures
✔ Maintain consistent banking and GD data
✔ Avoid invoice mismatches
✔ Respond quickly to system objections
📌 Final Thoughts
FBR’s RMS for sales tax refunds in 2026 is designed to balance speed with risk control. Taxpayers with clean compliance profiles benefit from FASTER, while risk-flagged claims are safeguarded through STARR. Understanding how RMS works helps businesses manage expectations, improve compliance, and secure timely refunds.
Disclaimer: This article is for general informational purposes only and is based on the Sales Tax Rules, 2006 as updated for tax year 2026. It does not constitute legal, tax, or professional advice. Tax laws, procedures, and interpretations may change, and their application can vary based on specific facts and circumstances. Readers are advised to consult a qualified tax professional or the Federal Board of Revenue (FBR) for guidance before making any tax-related decisions or filings.