FBR Adds Four Checks To Speed Up Exporter Refunds

The Federal Board of Revenue (FBR) has introduced changes to the sales tax refund mechanism by adding four extra validation cycles to help accelerate the processing of deferred and pending refund claims submitted by exporters.

Through SRO 1498(I)/2026 issued on Friday, the tax authority amended the Sales Tax Rules, 2006, introducing additional checks for refund claims that remain unresolved during the existing verification process.

Under the updated procedure, any portion of a refund claim that remains uncleared or unverified after eight validation checks, including the initial check, will automatically undergo four further validation cycles through the system.

The additional checks will be carried out on a weekly basis for the outstanding portion of the refund claim, according to the notification.

If any amount remains unresolved after completing all four additional validation cycles, the outstanding claim will then be moved for processing through the STARR module.

A tax expert said the additional validation opportunities were designed to benefit exporters by allowing pending refund claims more chances to satisfy the system’s verification requirements before being transferred to the STARR process.

He further noted that the FBR had introduced the revised mechanism after consultations with exporters.