FBR Revises Parametric Refund-to-Export Ratio Ceiling for Sales Tax Refunds

The Federal Board of Revenue (FBR) has re-fixed the ceiling of the parametric refund-to-export ratio from the previous 12 percent to 15 percent of the export value for the processing of the sales tax refunds of the commercial exporters.

In this connection, the FBR has issued a Sales Tax General Order (STGO) 05 of 2021 here on Friday.

The notification of the FBR stated that in the exercise of the powers conferred under Rule 39C of the Sales Tax Rules, 2006, the FBR has re-fixed the ceiling of the parametric refund-to-export ratio from the previous 12 percent to 15 percent of the export value for the processing of the Sales Tax refunds of the Commercial Exporters, that is, the Exporters who do not have a manufacturing facility, and are not registered in the “Manufacturer” category under the Sales Tax Act, 1990.

This shall be the maximum ceiling of admissible refund processed through the ‘FASTER’ system against valid exports after the confirmation of the realization of export proceeds as per rules, the notification added.

Courtesy: Pro Pakistani

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