The Federal Board of Revenue (FBR) has directed the release of Rs. 126 billion in pending sales tax refunds and duty rebates to businesses within two to three months.
The development was shared by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senior Vice President Saquib Fayyaz Magoon after a meeting with FBR Chairman Rashid Mahmood Langrial on Tuesday.
The meeting was held under the Prime Minister’s directive to conduct monthly meetings with Karachi’s business community and covered both deferred and older pending refunds. Deferred refunds had already been scheduled for release within one to two months.
According to Magoon, the pending amount includes Rs. 83 billion in sales tax refunds and Rs. 43 billion in duty rebates. He said the FBR chairman directed officials to clear both amounts within two to three months.
The meeting also covered issues faced by exporters under the Export Facilitation Scheme. Magoon said the 10 percent value addition requirement applies to exports of finished goods and not imported industrial raw materials.
He added that export consignments would not be stopped solely because the required value addition was not initially reflected, with the relevant information to be checked later.
The business community also raised concerns about pre-arrival goods declarations. Magoon said banks’ funds identification requirements often force importers to arrange payments at the last moment.
The FBR agreed in principle to check the requirement at the out-charge stage, which would allow more importers to file declarations before arrival and help reduce clearance times.
FPCCI also sought faster resolution of classification disputes. According to Magoon, the FBR chairman ordered the maximum period for resolving such cases to be reduced from 120 days to 90 days.
The meeting also agreed to address tax exemption issues under the Fifth Schedule, complete low-risk sales tax registrations within one week and speed up high-risk registrations following verification through relevant business associations.
