In a significant move to support exporters, the Federal Board of Revenue (FBR) has announced the extension of its rapid sales tax refund facility to all types of exporters, effective October 1, 2024. This initiative allows exporters to receive sales tax refunds within 72 hours through the “FASTER” system.
The FBR has implemented this change by amending the Sales Tax Rules, 2006, through the issuance of S.R.O. 1507 (I)/2024. Previously, the expedited refund process was limited to five key export-oriented sectors: textiles, carpets, leather, sports goods, and surgical instruments. With the new amendment, the FBR has broadened the scope of the “FASTER” system to include all categories of exporters.
Under the revised rules, the rapid refund procedure will apply to claims for the tax period starting from July 2019 for the initially eligible sectors. From October 1, 2024, this facility will be available to all exporters filing refund claims related to the export of goods.
This expansion of the “FASTER” system is expected to enhance liquidity for exporters, streamline the refund process, and boost the competitiveness of Pakistani goods in international markets.
