The Federal Board of Revenue has estimated an increase of only 10-15 percent in filing of general sales tax (GST) refund claims after withdrawal of exemptions under the RGST and new electronic refund payment system. Sources told Business Recorder here on Thursday that it is a misconception that there would be a sudden jump in the number of filing of sales tax refund claims following documentation under the RGST.
The factual status is that only 10-15 percent additional sales tax refund claims are expected after enforcement of the new system. According to sources, presently total sales tax refund claims comes to around 3,500 to 4,500 on monthly basis. After introduction of the RGST, the total claims would not increase beyond 10-15 percent. The five leading zero-rated export sectors ie textile, leather, carpets, surgical and sports are already filing refund claiming in the zero-rated regime.
It is expected that the refund claims of commercial exporters would increase under the new system of the Expeditious Refund System. The commercial exporters have been required to file their claims under the new electronic system, which would increase the number of claims to be processed by the Board.
In case of zero-rated sectors, they are already claiming refunds of packaging material and other inputs used by these sectors. The amount of refund of the zero-rated sectors would increase in the RGST, but the number of claims is not expected to witness any major jump as far as zero-rated sectors are concerned.
In case of commercial exporters, it would be verified from the bank statements that the sale proceeds have been credited for reconciliation purposes. Through the copy of the bank statement, the FBR would confirm the data of the commercial exporters for speedy payments of refunds, sources added.