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Tag: FASTER

  • FBR releases Rs51.5bn sales tax refunds through automated system

    FBR releases Rs51.5bn sales tax refunds through automated system

    ISLAMABAD: Federal Board of Revenue (FBR) has released Rs51.5 billion sales tax refunds through fully automated online system since July 2020.

    The FBR on Tuesday released information of release of refunds through Fully Automated Sales Tax E-Refund (FASTER) system.

    As per record, since July 2019, a total of refunds amounting to Rs. 64.5 billion were claimed through FASTR System.

    Out of it, refund cases of rupees Rs57 billion were processed. Out of these processed cases, refund payment of rupees 51.5 billion have been made to the exporters and businessmen so far.

    The remaining unpaid refund cases have been withheld due to incomplete date provision by the exporters and businessmen.

    The FBR introduced FASTER system for repayment of refunds to exporters against the deduction of taxes on their import of raw materials and other input taxes.

    Through Finance Act, 2019 the sales tax zero rating was abolished for all the sectors availing the facility. However, in order to facilitate the exporters the FASTER system was introduced to make payment of their refunds within 72 hours.

    FBR sources said that the tax authority had speed up the disbursement of refund payment to exporters, who were facing liquidity problems due to ongoing lockdown for prevention of coronavirus outbreak.

  • FBR sanctions Rs56 billion sales tax refunds through FASTER

    FBR sanctions Rs56 billion sales tax refunds through FASTER

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that an amount of Rs56 billion was paid as sales tax refunds to improve liquidity of exporters.

    The FBR shared 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 Rs. 59 billion have been filed and FBR has sanctioned Rs. 56 billion, which comes to around 95 percent of the claimed amount.

    During the month of March, FBR has sanctioned refunds of Rs. 25 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.

    FBR strives to make timely payment of Refunds to exporters so that they don’t face any liquidity issue.

  • FBR not to compromise integrity of automated refund system

    FBR not to compromise integrity of automated refund system

    KARACHI: Federal Board of Revenue (FBR) has told the legislators that it will not compromise the integrity of automated sales tax refund system despite pressures from various quarters.

    The FBR made a presentation before the standing committee of National Assembly on Finance, Revenue and Economic Affairs on Thursday. The officials of Large Taxpayers Unit (LTU) Karachi explained in detail about the newly launched Fully Automated Sales Tax e-Refund (FASTER).

    The standing committee had asked the FBR to explain the automated sales tax refund system following hue and cry from the business community that their refunds under the newly launched system were stuck up and they were facing liquidity problems.

    The FBR officials informed the standing committee the automated system was fully transparent and all doors had been closed for issuance of refunds on fake and flying invoices.

    It was informed that in the last budget the zero rating of sales tax was abolished which was related to five export oriented sectors.

    After withdrawal of SRO 1125(I)/2011, the items in the SROs had become subject to normal sales tax at 17 percent on import and local supply.

    In this scenario all the inputs of exporters have become taxable which gave rise to refunds and liquidity issues.

    However, the government resolved the issue of sales tax refunds of exporters through introduction of FASTER system, which applied from July 01 onwards.

    It is informed that data provided in monthly returns is treated as data in support of refund claim and no separate electronic data is required. “The only requirement is filing of Annexure-H with 120 days of the filing of sales tax return.”

    After filing, the claim is routed through processing module FASTER. Refund claim data is verified by the system and Refund Payment Order (RPO) of the amount found admissible is generated.

    The FBR officials told that RPO was electronically communicated to the State Bank of Pakistan within 72 hours.

    The standing committee was informed that refund claims, which were not verified through validation checks, are processed under STARR.

    In order to resolve issues related to FASTER system, the FBR deputed focal persons in all field formations. Besides, chief automation and PRAL team is available through cell phones/ helpline to assist taxpayers.

    Further, filing date of annexure – H has been extended up to February 15, 2020.

    After the launch of FASTER system the issuance of refund payment registered unprecedented growth of 165 percent. According to the briefing the FBR released Rs36.82 billion during July 01- January 21 2019/2020 as compared with Rs13.9 billion in the corresponding period of the last fiscal year.

    The issuance of refunds by LTU Karachi registered phenomenal growth of 317 percent to Rs7.89 billion during July 01 – January 21 2019/2020 as compared with Rs1.89 billion in the corresponding period of the last year.

  • FBR processes refund claims with data errors under FASTER system

    FBR processes refund claims with data errors under FASTER system

    KARACHI: Federal Board of Revenue (FBR) on Friday said it processed refund claims with data errors under Fully Automated Sales Tax e-Refund (FASTER) system.

    The FBR urged FASTER Refund claimants to file refund claims in sequence i.e. July 2019 and then August 2019 and so on.

    “Claims with data errors, rolled back and re-submitted claims relating to July 2019 have been processed,” the FBR said.

    Such claims relating to August 2019 are under process which will be followed by September 2019 and onwards claims.

    BCA Data is being sorted and Commercial Exporters Claims shall be processed in the coming week, the FBR added.

    The FBR recently introduced electronic refund processing system to facilitate taxpayers. However, due to glitches in the form submission created difficulties for taxpayers in obtaining refunds.

    The FBR issued a guideline for claiming refund under FASTER System.

    01. Annex-H is a stock statement of input goods / services which shows flow of inputs in terms of quantity, value and sales tax involved in opening / closing balances, purchases and consumption in exports and local sales.

    02. Quantities / values of finished products (exports and local) and output tax on local sales should not be mentioned in Annex-H.

    03 Use Annex H to upload for the month transactions i-e purchase, import and Consumption only, Opening and Closing are derived /calculated automatically.

    Same is applicable for Excel file uploading otherwise objection of duplicate value will arise.

    04. The brought forward and carry forward tax amount in the return should match with opening balance and closing balance tax amount in the Annex-H.

    05. The value of purchases and input tax paid thereon in the return should match with the corresponding figures in columns “purchased / imported during the month” in Annex-H.

    Properly filled Annex-H without objections and anomalies of data will ensure processing in 72 Hours, the FBR said.

  • FBR establishes help desks for resolving issues in automated sales tax refunds

    FBR establishes help desks for resolving issues in automated sales tax refunds

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday established help desks at various Regional Tax Offices (RTOs) and Large Taxpayers Units (LTUs) in order to facilitate taxpayers regarding resolving issues pertaining to Fully Automated Sales Tax e-Refund (FASTER).

    The FBR nominated officers at RTOs and LTUs in order to resolves queries and issues regarding filing of Annexure-H and issuance of refunds under FASTER system.

    The FBR nominated following officers for help desks:

    01. Bilal Zamir, Deputy Commissioner – IR, LTU Lahore.

    02. Ahmed Faiz, Assistant Commissioner-IR, RTO Faisalabad.

    03. Najam- ul -Hassan Sial, Assistant Commissioner –IR, RTO Faisalabad.

    04. Hafiz Muhammad Waris, IRAO, RTO-II Lahore.

    05. Muhammad Suleman, Senior Auditor, RTO-II Lahore.

    06. Malik M Javed Iqbal, Assistant Commissioner-IR, CRTO Lahore.

    07. Ms. Sharmeen Qamar, Assistant Commissioner – IR, CRTO Lahore.

    08. Aminullah Kakar, Deputy Commissioner-IR, CRTO Karachi.

    09. Shahid Rehan, Senior Auditor, CRTO Karachi.

    10. Sana Baluch, Deputy Commissioner-IR, RTO-III Karachi.

    11. Abdul Sattar Palh, Assistant Director Audit, RTO-III Karachi.

    12. Muhammad Imran Ali, Deputy Commissioner-IR, RTO Sialkot.

    13. Muhammad Qamar Minhas, Deputy Commissioner-IR, RTO Multan.

    14. Nadeem Ahmed, Deputy Commissioner-IR, RTO Multan.

    15. Fayyaz Ahmed, Deputy Commissioner-IR, RTO Multan.

    16. Ms. Riffat Aziz, Deputy Commissioner-IR, RTO Gujranwala.

    17. Muhammad Ali, Assistant Commissioner-IR, RTO Gujranwala.

    18. Amjad Ali Moroojo, Inland Revenue Audit Officer, LTU Karachi.

  • FBR pays Rs11 billion refunds through FASTER system

    FBR pays Rs11 billion refunds through FASTER system

    ISLAMABAD: Federal Board of Revenue (FBR) has paid sales tax refunds worth Rs11 billion through its newly introduced online system since July 01, 2019.

    In a statement issued on Thursday, the FBR said that it had issued refunds through Fully Automated Sales Tax e-Refund (FASTER) system without human intervention worth Rs11 billion against claims of Rs15 billion.

    While clarifying a news report, the FBR said that the issue of liquidity problems due to imposition of Sales Tax on previously zero rated sectors was raised in the standing committee.

    The FBR acknowledged the issue and explained that in first 6 months, a total of Rs98 billion refunds have been issued as opposed to Rs31 billion in last year.

    Most of these refunds have been given to exporters including encashment of refund bonds issued last year.

    It was also emphasized that if the government on one hand has brought the export oriented sector under VAT regime, it has heavily facilitated the sectors by providing sizable subsidy on gas and electricity despite a very narrow fiscal space available to it.

    So the perception conveyed by the news item is a bit misleading and the Federal Government and FBR are trying to provide maximum facilitation to businesses in a collaborative and consultative process.

  • Exporters claim Rs62 billion fresh refunds stuck up despite FBR’s 72-hour clearance assurance

    Exporters claim Rs62 billion fresh refunds stuck up despite FBR’s 72-hour clearance assurance

    KARACHI: The new 72-hour sales tax refund clearance strategy of Federal Board of Revenue (FBR) has failed as another Rs62 billion refunds were stuck up since launch of the new systems, exporters said.

    Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum in a statement on Friday said that around Rs62 billion of textile exporters liquidity held up with the government under FASTER Refund System in last 4 months, after imposition of 17 percent Sales Tax on Exports.

    Before abolishing SRO 1125 – zero percent sales tax for five export oriented industries –the government committed that sales tax refund claims payments will be paid immediately after submission of GD like Bangladesh Model.

    Contrary to Bangladesh Refund Model, Govt. launched FASTER by which sales tax refunds to be paid within 72 hours electronically. New FASTER system has been failed and FBR processing claims manually and SBP paying refund on advice of FBR.

    He said that huge amount of exporters’ liquidity of billions of rupees in Sales Tax Refund, Custom Rebate, Withholding Tax, DDT and DLTL has been stuck up with the government causing great sufferings to the already burdened exporters who are now at a loss to understand how to make both ends meet and such an alarming situation will ruin the export business of the Value Added Textile Exporters.

    On the demand of exporters, the government has withdrawn Refund Bonds electronically but payments against refund bonds have not been paid yet to the exporters, he informed.

    FBR also claimed that Custom Rebates shall be paid electronically with Export Proceeds as a result of system automation, however, the plan has not been turned into reality but previous backlog of eight months have been increased to twelve months.

    He added that due to financial hardships, Value Added Textile SMEs are not taking new export orders.

    It is pertinent to note that meager increase in the exports of value added textile sector due to previous policies of Government before Budget 2019-20.

    The impact of the policies of current Budget 2019-20 will be arrived in 2020 calendar year. It is a great irony that FBR vide SRO 747(I)/2019 dated 9th July, 2019 has withdrawn the exemption of sales tax and federal excise duty on buying of locally procured input goods by Export Oriented Units under SRO327.

    This Scheme was introduced on the pattern of Export Processing Zone (EPZ) where there is no taxes on buying of locally procured input goods and no taxes on utilities.

    Industries registered in Export Oriented Units (EOU) are liable to export 80% of their annual production. FBR should withdraw amendment to omit the clause 10 sub-section (b) and (c) of the Export Oriented Units and Small and Medium Enterprises Rules, 2008 so that exporters operating under Export Oriented Units can procure input goods without taxes as this is the safest scheme and item-wise individual analysis card is submitted in WEBOC.

    He said that exporters have a gut feeling that FBR with its harsh policies is trying to destroy value added textile export sector which is the largest export sector and labour intensive.

    It is an alarming situation that new comers are not interested in the business of export sector due to harsh incumbent government policies. Our existing Export Industry gets spillover orders from the international buyers and is surviving due to economy of scale and efficiency in the production.

    He demanded that government should clear all pending refund payments of exporters forthwith and restore zero rating (0%) of sales tax – no payment no refund regime in the best interest of exports, economy, foreign exchange earnings, employment etc.

  • FBR criticized for delaying sales tax refunds under FASTER module

    FBR criticized for delaying sales tax refunds under FASTER module

    KARACHI: Business community has criticized Federal Board of Revenue (FBR) for delaying release of sales tax refunds under newly launched Fully Automated Sales Tax e-Refunds (FASTER) module.

    Suleman Chawla, President of SITE Association of Industry, while expressing deep concerns over the poor performance of the recently launched Fully Automated Sales Tax e-Refunds (FASTER) module, stated on Friday that FBR claimed of processing payments of Sales Tax Refunds within 72 hours through FASTER module but the ground reality was totally contrary to this claim as many exporters have not received anything.

    He pointed out that many exporters have not received outstanding refunds for July 2019 which was really worrisome and too disappointing for the Business and Industrial Community as the FASTER module was launched with a commitment to release refunds within 72 hours but it was not happening at all, which has intensified the hardships for exporters who are finding it almost impossible to stay afloat due to delays in release of refund claims and rescission of SRO 1125(I)/2011 dated 31.12.2011, which allowed zero-rating of inputs of five export-oriented sectors.

    “It was a matter of grave concern that a system titled FASTER for processing refund claims within 72 hours, has actually made the entire process too messy and cumbersome while the FBR officers in Islamabad were also totally unaware and confused because of the so-called FASTER system hence, it should be remained as SLOWER”, he criticized.

    President SAI said that it has been a month since the first tranche was processed via FASTER module but many exporters have not received funds, creating severe liquidity crunch for the exporters from five export-oriented industries which clearly indicates that FASTER system has failed miserably to improve the situation in fact it has made the refunds process more cumbersome and slower.

    He was fairly optimistic that keeping in view the government’s resolve towards ensuring the Ease of Doing Business, the decision makers would pay attention to this serious issue and order the concerned department to improve FASTER’s performance which would certainly be warmly welcomed by business community of Karachi but also by all other stakeholders from across the country.

    He appealed to the Federal Minister for Finance, Revenue and Economic Affairs, adviser to the Prime Minister on Finance and Chairman, FBR to personally intervene for immediate release of pending claims so that exporters could meet their export contracts.