AGP Study Reveals FASTER System’s Superior Efficiency Over STARR in Refund Processing

ISLAMABAD:

A recent impact study (2023-24) by the Auditor General of Pakistan (AGP) has unveiled substantial differences in efficiency between the Federal Board of Revenue (FBR)’s “FASTER” and “STARR” systems for refund processing. The FASTER system, introduced to streamline refund payments, has shown a significant improvement, with processing times ranging from eight to 19 days. In stark contrast, the STARR system’s processing durations extend between 286 and 753 days.

The study notes that the FASTER system centralizes the entire refund process—from verification to payment authorization—at the FBR headquarters, whereas the STARR system relies on field formations for these tasks. This centralization under FASTER has resulted in a higher volume and total value of refunds processed compared to STARR.

Additionally, the report highlights that refunds processed through the STARR system experience average credit delays of 153 to 173 days, whereas FASTER handles cases within nine to 29 days.

In light of these findings, the AGP has recommended the consolidation of refund processing onto a single platform. The report advocates for extending the FASTER system’s use to other sectors and suggests a thorough review of the FBR’s tax gap framework to include refund liabilities. Addressing the systemic issue of non-payment and implementing a risk-based prioritization for pending claims are also proposed to mitigate delays and improve th