FBR sets stage-wise deadlines to clear backlog of deferred sales tax refunds

According to Profit by Pakistan Today, the Federal Board of Revenue has introduced phased deadlines for processing sales tax refund claims deferred under the FASTER system. Field offices have been told to clear pending files and stop the backlog from growing, after claims that passed prescribed validation stalled over missing paperwork and slow follow-up. Chief Commissioners Inland Revenue have been directed to ensure the new schedule is followed.

After 12 validation checks or cycles, FASTER dispatches a deferred memo to both the taxpayer and the field office handling the file. Within seven days, the taxpayer is expected to furnish the paperwork the office has requested. Non-compliance or incomplete papers prompt an objection memo and reminders, and persistent default can lead to show-cause proceedings.

Refund claimants must also submit a standard set of records, covering registration numbers, invoices, customs declarations, monthly filings, bank details and Section 73 compliance documents. Claims will be checked and verified through STARR before moving to the sanctioning officer, and receiving officers will log any missing items on arrival. FBR has clarified that these timelines do not cover claims tied to surplus carry-forward balances or input tax held over under Section 8B of the Sales Tax Act, 1990.