To facilitate exporters, the Central Board of Revenue (CBR) will soon issue instructions to all the collectors of sales tax to clear backlog of sales tax refund.
Official sources told Business Recorder here on Wednesday that most of the collectorates of sales tax seemed busy in processing fresh applications pertaining to refund claims.
However, there is a need to clear previously filed applications where refunds were claimed but no action was taken by the collectorates.
The CBR's instructions will bind the collectorates to immediately process applications of a specific time period.
When asked whether new sales tax rules would be notified for the clearance of past applications, officials said that there is no need to issue SRO for clearance of previous claims and a directive would serve the purpose.
They said that the CBR has taken a number of steps to expedite processing of fresh refund claims in Budget 2004-05. The instructions would also streamline the refund process in this regard concerning clearance of backlog of refund claims.
The new procedure will have the provision of full payment of claim amount replacing the existing system making payment in parts.
Most of the verifications, calculations and processing would be completed through the computer system. The existing software called STARR refund automation programme has been enhanced with the introduction of 'STREAMS' (Sales Tax Risk Evaluation and Management System).
This will considerably reduce the discretion and interference of tax officials in the refund mechanism.