The Federal Board of Revenue (FBR) has revised the upper cap for the processing of deferred sales tax refunds under the “FASTER” system, increasing it to 10% of the export value for most exporters, excluding five export-oriented sectors.
The new instructions, issued to FBR field formations, allow for the processing of refunds for exporters outside the five key export sectors up to a 10% cap. This adjustment was made following the issuance of SRO 1507(I)/2024 and is designed to streamline the refund process.
Previously, the FBR had set varying capping limits for processing refunds, ranging from 2% to 8% of export value, depending on the finished products of exporters.Â
Under the new policy, the upper cap for processing deferred sales tax refunds will now be based on either 10% of the export value or the actual amount of valid input tax consumed in the exports, whichever is lower.Â
This change aims to provide a more uniform and efficient approach to processing refunds across non-export-oriented sectors.
