The Fully Automated Sales Tax e-Refund (FASTER) system of the Federal Board of Revenue is down for the last two months due to a system glitch, it disclosed on Sunday.
Sources told ProPakistani that FBR has informed the textile exporters of the suspension of online processing of Sales Tax Refund claims and assured them that the hardware and the software of the FASTER system are being upgraded.
FBR claimed to process sales tax refunds in 72 hours after introducing the FASTER system, but sources said that exporters have not filed their sales tax claims since January 6, 2023.
FBR in a recently held meeting with leading textile exporters pointed out certain individual cases involving sanctioning of inadmissible refund claims.
This includes duplicate Invoice claims by certain taxpayers, duplicate claims of Goods Declaration, Processing of excess refund through FASTER over & above the maximum limit of 12 percent of export value, Transfer of excess amounts of refund in the accounts of the exporters and Check/restriction regarding debit /credit note.
Sources said that textile exporters could not file Rs. 70 billion sales tax refund claims just in the last two months due to the suspension of the FASTER system.
The exporters are facing financial issues due to which business activities are being slowed down, an official who attended the meeting.
FBR officials assured the exporters that the department is taking steps to disburse all outstanding refunds to release the financial stress.
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