Islamabad, Pakistan – The Federal Board of Revenue’s (FBR) FASTER system has significantly outperformed the STARR system in processing sales tax refunds, according to an impact study conducted by the Auditor General of Pakistan (AGP).
The study found that FASTER processed refund claims in an average of 8 to 19 days, while STARR took between 286 and 753 days. The FASTER system also processed a higher number of refund claims and a larger total claimed amount compared to STARR. Business Recorder
The main difference between the two systems is that FASTER processes claims centrally at the FBR headquarters, while STARR processes claims at the field formation level. This centralized approach in FASTER contributes to its faster processing times.
The AGP has recommended that the FBR consolidate all refund processing under a single platform to further improve efficiency. The report also highlighted the need to address systemic issues that contribute to delays in refund payments.
The FBR should review its tax gap framework to incorporate refund liabilities and prioritize refund payments based on risk. By implementing these recommendations, the FBR can enhance the taxpayer experience and improve the overall efficiency of its refund processing operations.
