tax ombudsman flags
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Tax ombudsman flags flaw in FBR refund system

ByJustpaste.in

Pakistan’s Federal Tax Ombudsman has identified a major flaw in the Federal Board of Revenue’s (FBR) FASTER sales tax refund system and directed the tax authority to take immediate corrective measures.

The ombudsman said the issue is affecting exporters and undermining the effectiveness of the automated sales tax refund mechanism, which was introduced to ensure quicker processing of refund claims.

The observations were made in a ruling issued by Federal Tax Ombudsman Zafar Hijazi while deciding complaints filed by a company regarding delays and issues in the refund process.

According to the decision, the FASTER system is unable to distinguish between commercial export goods declarations and non-commercial sample exports. As a result, exporters may face unnecessary delays or complications in obtaining legitimate sales tax refunds.

The ombudsman directed the FBR to address the technical shortcomings in the system without delay to ensure that genuine exporters receive timely refunds and the automated mechanism functions efficiently.

The ruling emphasized that improving the FASTER system is essential for protecting exporters’ interests and maintaining confidence in Pakistan’s tax refund process

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