FBR Orders Swift Resolution of Deferred Sales Tax Refund Claims

FBR Orders Swift Resolution of Deferred Sales Tax Refund Claims

March 8, 2024

Karachi, March 7, 2024 – The Federal Board of Revenue (FBR) has issued new directives to tax offices, mandating swift action on deferred sales tax refund claims. These instructions are aimed at addressing the backlog and ensuring a timely resolution of future claims.

In a communication to chief commissioners Inland Revenue, the FBR outlined the following guidelines to expedite the processing of deferred sales tax refund claims:

(i) Clearing the Backlog: All pending deferred sales tax refund claims must be resolved by June 1, 2024. This includes claims that have been communicated by the automated system up to the current date.

(ii) Speedy Processing of Future Claims: Future deferred claims must be processed and resolved within one month of their deferment by the automated system.

These directives aim to streamline the process, ensuring that businesses and taxpayers receive their sales tax refunds without unnecessary delays. The FBR’s clear timelines and focus on accountability are designed to improve the efficiency of the tax refund system.

To ensure compliance with these deadlines, chief commissioners Inland Revenue are instructed to personally oversee the processing and disposal of deferred sales tax refund claims. The FBR emphasizes that strict adherence to these instructions is crucial to prevent further delays in tax refunds.

This decisive action by the FBR reflects a commitment to enhancing the refund process, ultimately benefitting businesses and promoting a favorable business environment. By addressing the backlog and ensuring swift resolution of future claims, the FBR aims to build a more transparent and efficient taxation system.

Businesses and taxpayers hope that these measures will lead to a more predictable and responsive sales tax refund process. The FBR’s focus on improving its operations and enforcing compliance deadlines is a positive step towards fostering a more business-friendly taxation system in Pakistan.

The FBR’s proactive approach, with personal oversight from chief commissioners, indicates the seriousness of the issue and the urgency to resolve deferred sales tax refund claims. As tax offices work towards meeting the deadlines, the FBR anticipates a significant reduction in the backlog, contributing to a more efficient tax refund system.