Dr. Muhammad Ashfaq, Member, Inland Revenue (Operations), FBR, said that the newly upgraded ‘Fully Automated Sales Tax E-Refund (Faster) Plus System’ is so fast and transparent that exporters now need no sales tax zero rating.
Addressing a meeting of Sialkot exporters organized by the Pakistan Readymade Garments Manufacturers and Exporters Association, he said that the FBR was paying a refund of Rs 200-250 billion to the exporters every month, as each exporter is included in the FASTER Plus system, which is performing very well and does not involve human hands.
Dr Mohammad Ashfaq said the new system was giving exporters an opportunity to review and resubmit their claims after rectifying the shortcomings. He said that Sialkot is the hub of SME sector which is in dire need of working capital for its smooth operation.
During his address, Dr. Ashfaq did much in favor of increasing industrialization and exports to create more jobs in line with Prime Minister Imran Khan’s vision.
“I am your focal person and available to the industry 24/7. My doors are always open for you.”Mr Ashfaq |
Speedy Process of Sales Tax Refunds
The FBR member reiterated the government’s commitment to prompt payment of tax refunds and eliminate all worries in this regard. Addressing the meeting, Sohail A. Sheikh, Central Chairman, PRGMEA, lauded the member for his claims of speedy sales tax refund through the Fast Plus system. He said that initially, due to some technical glitches in the system, the exporters faced problems like many cases got stuck in the pre-processing stage, refund amount missing, and refund status. There have been no reports of delays in the return process. Now things are going smoothly under the new system.
Ejaz Khokhar, Chief Coordinator, PRGMEA, said that the return of SRO 1125 has had a negative impact on exporters. Because, full cash flow is maintained for at least three months till the time of shipment. He demands from government to restore the zero-rated regime to handle the negative impact of cash flow situations.
What are zero rated goods?
Zero–rated goods are products that are exempt from value-added taxation (VAT).
What is Zero –Rated Supply ?
Rated supply means a taxable supply which charges to tax at the rate of zero percent. It is different from exempt supply in the sense that in case of exemption no sales tax is leviable whereas zero rated goods are chargeable to sales tax but at the rate of zeropercent.
Difference between zero rated and exempt?
For a “zero–rated good,” the government doesn’t tax its sale. But allows credits for the value-added tax paid on inputs. If a good or business is “exempt,” the government doesn’t tax the sale of the good, but producers cannot claim a credit for the VAT they pay on inputs to produce it.
Zero Rating Sector | Exports | Zero Rated Exports | FBR | Federal Board of Revenue | Sales Tax Rates | Zero Rated Sales Tax Goods |