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ISLAMABAD: The Senate Standing Committee on Finance and Revenue has raised serious concern over the persistent sales tax refund delay, particularly affecting the food export sector. Chaired by Senator Saleem Mandviwalla, the session was held at Parliament House to assess refund bottlenecks, business migration, and current tax policies.
During the meeting, Senator Mandviwalla emphasized that despite the 72-hour deadline for refund processing, numerous complaints indicate prolonged delays in releasing funds. He remarked, “Many complaints on non-refund of sales tax have been received. Refunds are to be made within 72 hours; however, months have now passed in many cases.”
Federal Board of Revenue (FBR) representatives responded by stating that all validated claims in five core export-oriented sectors—textiles, leather, sports goods, carpets, and surgical goods—have been settled through the FASTER system. They reported that no pending refund claims exist under the current automated structure.
From July to April of FY 2024–2025, the FBR claims it disbursed Rs317.41 billion in refunds under 33,204 Refund Payment Orders (RPOs) through FASTER. However, Senator Mandviwalla specifically flagged the sales tax refund delay in the food export sector, which generates $4.8 billion in annual exports. He urged the FBR to consider a sectoral priority framework to ensure timely payments.
FBR officials responded that refunds for the food export sector are scheduled for release by Friday. They also mentioned that all 72 export sectors under FBR oversight are being considered for refund processing.
The Senate committee directed the FBR to submit a full report detailing refund delays, including sector-specific data, disbursement timelines, and reasons behind the lag.
