Islamabad: The Federal Board of Revenue (FBR) has developed its refund payment system, titled ‘Fully Automated Sales Tax e-Refund (FASTER)’, for facilitating the release of reconciled refunds to exporters, according to a news source. This advanced system is expected to be launched today (Tuesday).
A department official confirmed the launch; saying that after the system’s implementation, the first batch of refunds amounting to millions will be released to exporters – with special focus on five major export-oriented sectors in which zero-rating regime was abolished in the budget of FY 2019-20.
The total demand of refunds stands at PKR 1.2 billion, but the reconciled amount will be somewhere in millions to be released through the FASTER system.
As per the official, despite the concerns of exporters about the billions in funds that might lead to the creation of liquidity crunch, the department’s IT-based system for payment of refunds is likely to ensure the success of abolishing zero-rating regime for the five export-oriented sectors. Moreover, this system will provide safeguard against flying or fake invoices, he added.