FBR FASTER Refund System Issues Cost Taxpayers Billions: FTO

Exporters have lost billions in sales tax refunds due to FBR FASTER refund system issues.

The FTO’s detailed FASTER refund payment system order against the FBR boils down to this.

FTO order said that the FBR’s refusal to revise complainants’ sales tax returns due to delay in the face of its own circulars admitting that the FATSER refund system is malfunctioning and condoning delay in some situations is maladministration.

The FTO has directed the FBR to ensure that Member Inland Revenue (Operations) revisits the condonation decision, condones the delay, and swiftly resolves the sales tax refund/credit claimed for the relevant tax periods.

Exporters have lost billions in sales tax refunds due to FBR FASTER refund system issues.

The FTO’s detailed FASTER refund payment system order against the FBR boils down to this.

FTO order said that the FBR’s refusal to revise complainants’ sales tax returns due to delay in the face of its own circulars admitting that the FATSER refund system is malfunctioning and condoning delay in some situations is maladministration.

The FTO has directed the FBR to ensure that Member Inland Revenue (Operations) revisits the condonation decision, condones the delay, and swiftly resolves the sales tax refund/credit claimed for the relevant tax periods.

The FBR admitted in circular 3 of 2020 and STGO 9 of 2023 that the FASTER system had been malfunctioning. FBR ignored its own circulars admitting that FASTER is malfunctioning, causing taxpayer problems. The Board has granted other exporters condonation letters for filing updated sales tax returns on the same problem.

Despite field Chief Commissioner advice, the FBR would not tolerate sales tax return delays. Thus, the FBR’s observations are misguided and contradict the Chief Commissioners/Commissioners’ reports. The Chief Commissioners/Commissioners have clearly explained the reasons and given arguments for condoning delay, which the FBR has ignored and misreported, FTO directive noted.

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