FBR orders setting up of help desks to facilitate refund claims

19 RTOs, corporate RTOs and four large taxpayer units have been given instructions

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to set up special desks at all regional tax offices and large taxpayer units to facilitate sales taxpayers in refund claims for five zero rated export sectors through the fastest refund system (Faster System).

All 19 regional tax offices, corporate RTOs and four large taxpayer units (LTUs) have been given written instructions by the FBR. In a letter written to chief commissioners for Inland Revenue of all RTOs and LTUs, a copy of which is available with the Express Tribune, the FBR has advised all its field formations that the special help desk would also facilitate taxpayers in problems associated with submission of annex ‘H’.

The FBR advised that the help desk must have a minimum of two officers, nominations for which must be submitted to the FBR headquarters latest by Monday in a report form along with their posts, contact numbers and email addresses. The details of the help desk officer must also be shared with the trade associations and exporters concerned so that they can avail maximum benefit from the facility. The FBR had earlier permitted exporters of five zero-rated sectors, including textile, leather, carpets, sports and surgical instruments, to only submit annex ‘H’ in place of revised tax returns.

The tax agency through its ‘Sales Tax General Order No 4’ had also introduced an exclusive refund claim processing system; FASTER, through which payments for refunds could be made within 72 hours of the submissions. However, the taxpayers are reporting that the refunds are not being processed or paid in the designated time while the new tax refund system had become effective from July 2019.

As per the sales tax general order, taxpayers who have submitted annex ‘F’ and desire to submit revised returns are finding it difficult to ensure compliance with information in annex ‘H’. Subsequently, the FBR has clarified in its order that the discrepancies in the two annexures will not affect the status of refund claims as the two are not connected.

The refunds, FBR stated, are based on information provided in annex ‘H’. The order further stated that a large number of refund applications filed under the FBR’s FASTER programme are pending completion due to which exporters are facing difficulties.

The exporters had also requested the FBR to submit revised tax returns on the grounds that the information they had given in annex ‘F’ was not compliant with annex ‘H’.

In its clarification, the FBR stated that information in annex ‘F’ did not affect return claims in any sense except that the carry forward value added tax was deducted from the refund amount.

The FBR has directed taxpayers to expedite submission of annex ‘H’ through the automated FASTER system. On the other side, FBR has also advised all its field formations to ensure that filers who report compliance issues in annex ‘H’ and annex ‘F’ are not troubled in processing of their tax refund claims.

Published in The Express Tribune, January 5^th, 2020.

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