FBR Verifying Just 30% of Total Rebate Claims Filed by Exporters in FY23

The Federal Board of Revenue (FBR) is verifying only 30 percent of the total rebate claims filed by the exporters during the current fiscal year (FY23). FBR officials told a select group of reporters on Wednesday that major export facilitation measures have been taken to increase exports. Under the procedure for speedy payments of refunds, the FBR has sanctioned 60-70 percent of the customs duty drawback and rebate to the exporters through the low-risk system during the first half of 2022-23. Now the FBR’s rebate payment system is fully automated for the exporters. Under the risk-management system, all low-risk cases of exporters are automatically sanctioned rebates. Nearly 60-70 percent of the rebate cases are cleared through the low-risk system. There are around 30 percent rebate cases that require scrutiny. During the first six months (July-December) of the current fiscal year 2022-23 (FY23), the FBR has paid the duty drawback of Rs 15.5 billion to the exporters through an automated system. In 2021-22, the FBR performance was evident despite around 34 percent increase in the refunds/rebates paid to the exporters