FASTER system had been launched for prompt release of sales tax refund after the government withdrew the zero-rated facility provided to five export-oriented sectors and imposed 17% general sales tax (GST). Gohar said timely payment of sales tax refunds was still a major issue as despite all the commitments, the FBR had failed to make sales tax refunds to the zero-rated sectors within 72 hours through the FASTER system. Gohar said the processing of exporters’ refund claims had been stopped for the past 20 days due to a technical glitch in the FBR’s system. “The government should not have withdrawn the zero-rated facility for the export-oriented sectors before making its automated tax refund system fully functional,” remarked Pasha. Responding to a question, he said refund claims of commercial exporters could not be processed until the credit advice from banks was received from abroad.

Source: The Express Tribune March 06, 2020 04:18 UTC