The Gujranwala Art Silk Merchants Association has demanded of the government to amend the Duties and Tax Remission for Export (DTRE) scheme, keeping in view the country's ground realities instead of implementing it as it is.
While talking to Business Recorder here on Thursday, the Association's general secretary Muhammad Younus Qureshi said that the DTRE has been copied by the authorities concerned assuming its successful functioning in as many as 90 countries and implemented as it is, without envisaging its bright and dark angles.
"Indeed the world is very wide and information technology has converted it to a global village. However, if system functions smoothly in certain countries of this global village, it does not mean that the same system will function in the same manner in Pakistan," he added.
"The yarn imported under the DTRE scheme is being sold in the open market rather at much lower price of the commercial importers' landing costs."
Citing an example, Qureshi said, "Polyester Flat Yarn commercial importers pay aggregated volume of 55.69 percent (Customs duty, Sales tax and Income tax) over and above the Import Trade Price, whereas the importers registered under the DTRE scheme pay nothing.
It means that if the DTRE importers sell their goods at 10-15 percent reduced price of the landing costs of commercial importers, how the commercial import would continue to be viable. As a result, the national exchequer is being caused double loss," he maintained.
"DTRE importers are allowed 18 months to account for the import made, in their exports," he said, adding, "this period is excessive and needs to be reduced to six months maximum in order to enable the DTRE importers to use the imported yarn within their own manufacturing units."
He said that pre-clearance of goods from the ports, goods imported under the DTRE scheme, each and every carton should be stamped that "Imported Under DTRE Scheme" and not for commercial sale.
Through a notification, it's sales in the commercial market should be banned. "In case, the proposal seems to be impractical, the banks must include a clause in the Letters of Credit," he said.
"We must have to do one way or the other to control the sale of goods imported under the DTRE scheme in the open market, to protect the revenue collected against commercial imports," he maintained.
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