Lahore, Pakistan – Raza Ashfaq Sheikh, Commissioner Inland Revenue and Member Sales Tax Appellate Tribunal Punjab, has provided clarity on the sales tax refund payment system under the Finance Act, 2024, to representatives of the All Pakistan Textile Mills Association (APTMA).
During a workshop organized by APTMA, Sheikh explained that the Federal Board of Revenue (FBR) has implemented three automated systems – FASTER, ERS, and STARR – to streamline the refund process. These systems are designed to enhance efficiency and transparency in the payment of sales tax refunds.
In addition to the automated systems, Sheikh discussed Sales Tax General Order (STGO) 9 of 2023. This order outlines the framework for sales tax refunds, including the legal provisions and rules governing the process. Business Recorder
Sheikh emphasized that the refund scheme under the Sales Tax Act, 1990, can be divided into three key categories: legal provisions, automated systems, and checks for scrutiny and audit. He highlighted sections 8B, 10, 66, and 67 of the Act, as well as the relevant rules, as essential components of the refund process.
The APTMA workshop aimed to educate its member mills about the tax system and help them avoid potential disputes with FBR field formations. By providing clarity on the refund system and addressing concerns raised by the representatives, the workshop contributed to a better understanding of the tax landscape and facilitated smoother compliance.
Overall, the workshop was a valuable opportunity for APTMA members to gain insights into the sales tax refund process and resolve any queries they may have had. The FBR’s commitment to improving the efficiency of the refund system through automated systems and clear guidelines is a positive development for taxpayers.
