Islamabad, Sep 15: The Federal Board of Revenue’s (FBR) “FASTER” refund payment system took eight to 19 days to process refunds whereas the “STARR” system took 286 to 753 days to process payment of sales tax refunds.
The Auditor General of Pakistan (AGP) conducted an impact study in 2023–24 on the Fully Automated Sales Tax E-refund (FASTER) system, and the results showed that both systems handle refund payments in simultaneously.
The primary distinction between the two systems is that cases processed via FASTER are handled centrally at every stage, from claim verification to payment authorization at the FBR headquarters.
According to the research, cases processed through “FASTER” took 9 to 29 days, whereas average credit days in STARR varied from 153 to 173 days.
The AGP has suggested that refund situations be processed through a single platform. Other industries that are currently outside of its purview may also be permitted to submit reimbursement claims via “FASTER.”
Reviewing the FBR’s tax gap framework is necessary in order to account for possible refunds as well as refund liabilities. Refund nonpayment is a systemic issue that the department must address.
The AGP report also stated that pending refund claims would be risk classified and payments would be made in accordance with risk.
