The Federal Board of Revenue (FBR) has amended the Sales Tax Rules, 2006, to require four additional weekly system validation checks for refund amounts that remain uncleared or unverified after the existing eight checks. The change took effect on 4 September 2026.

The FBR issued SRO 1498(I)/2026 under Section 50 of the Sales Tax Act, 1990, amending sub-rule (2) of Rule 29 and the second proviso of Rule 39F. Both provisions previously stated that any amount still uncleared after eight validation checks would be processed under the STARR channel or STARR module. The amended wording replaces that with a four-week extension before referral.

What the amended rules say

Under the revised Rule 29(2), after eight validation checks: including the initial one: any amount that remains uncleared or unverified shall be subjected to four additional validation checks or cycles, conducted once every week by the system. If the amount remains uncleared or unverified after those four weekly cycles, it shall thereafter be processed under the STARR module as referred to in Chapter V of the Sales Tax Rules, 2006.

The identical amendment has been made to the second proviso of Rule 39F, which governs similar validation procedures under the same rules.

How the revised process works

  • The FASTER system runs its standard eight validation checks, including the initial one, on each refund claim.
  • Any portion of the claim that remains uncleared or unverified after the eighth check is not immediately sent to the STARR module.
  • Instead, the system subjects that amount to four additional validation checks, one per week.
  • If the amount clears during any of those weekly checks, a Refund Payment Order (RPO) is generated and communicated to the claimant, the relevant Regional Tax Office or Large Taxpayer Office, and the State Bank of Pakistan for payment.
  • If any portion remains uncleared or unverified after all four additional weekly checks have been completed, it is sent to the STARR module under Chapter V of the Sales Tax Rules, 2006.

Who is affected

The amendment primarily affects sales tax refund claimants using the Fully Automated Sales Tax e-Refund System (FASTER), including exporters whose refund claims have been deferred or remained pending due to uncleared or unverified amounts. The FBR consulted with exporters before introducing the changes, according to a tax expert cited in a Profit by Pakistan Today report.

The notification was issued by the Second Secretary (ST&FE), Islamabad, under file number 3(8) ST&FE Policy/2026.

What the evidence does not yet establish

The notification does not specify a separate effective date beyond its issuance on 4 September 2026, nor does it indicate whether the additional checks apply to refund claims already undergoing the eight-check cycle on that date. The FBR has not published guidance on how the STARR module processes amounts referred under the amended rules.