FBR chief orders payment of Rs126bn in tax refunds, duty rebates

Dawn reported that the Federal Board of Revenue will pay out Rs83 billion of sales tax refunds and Rs43 billion of duty rebates. Saquib Fayyaz Magoon of the FPCCI shared the outcome after meeting FBR Chairman Rashid Mahmood Langrial on Tuesday. The chairman has ordered pending amounts cleared in two to three months, while deferred refunds fall due in one to two months.

The Export Facilitation Scheme was also discussed, as exporters had faced holdups from higher valuation rulings on imported raw materials. Goods declarations will now proceed for export, with the 10 per cent value-addition check reviewed afterwards rather than acting as a standalone bar. In principle, the funds identification condition will be checked at the out-charge stage, easing pre-arrival filings.

The FPCCI also sought a shorter period for classification disputes, and the chairman cut it from 120 days to 90 days. Low-risk sales tax registrations will be completed within one week, while high-risk cases will be verified through associations. Anomalies in Fifth Schedule exemptions are to be resolved immediately with the relevant departments.