FBR eases cap for deferred ST refunds

ISLAMABAD: The Federal Board of Revenue (FBR) has relaxed upper capping limit up to 10 percent of the export value for processing of deferred sales tax refunds of exporters (excluding five export orientated sectors) under the “FASTER” system.

In this regard, the FBR has issued instructions to the field formations on processing of deferred refunds under the “FASTER” system.

Under the new instructions, the FBR has relaxed refund processing limit of exporters other than five export sectors upto 10 percent.

According to the FBR’s instructions, in pursuance of SRO 1507(I)/2024, the Board vide CRE-35 has determined lower capping for processing of refunds of exporters (other than five export-oriented sectors) at the rate of 2 percent, 3 percent, 4 percent and 8 percent of export value for processing through FASTER on the basis of their finished products. Further, for processing of deferred Sales Tax refunds of Exporters (other than five export-oriented sectors) the Board has decided to fix upper capping up to 10% of export value (including the lower capping) or the amount of valid input tax actually consumed in exports, whichever is lower as uniform policy.—SOHAIL SARFRAZ