FBR unveils expedited sales tax refund system for exporters
The Federal Board of Revenue (FBR) has launched the new sales tax refund system to make the export process better. The change, notified through SRO 1507(I)/2024, modifies the Sales Tax Rules, 2006 and allows a refund claim up to July 2019 to exporters. The main aim is to help free up cash flow faced by businesses in all parts of the economy.
With the updated system, now manufacturers as well as commercial exporters will be facilitated under the FASTER system but they are required to provide export proceeds realization certificate or bank credit advice for refunds. Claims that do not have the benefit of being subjected to FASTER guidelines for expedited processing go through the Sales Tax Automated Refund Repository (STARR) system, enabling all legitimate claims to be processed.
Moreover, the FBR explained how refund of zero-rated items will be made and that too only on purchases/input taxes on goods purchased or imported which.
