The Ministry of Industries and Production has asked the Central Board of Revenue (CBR) to enhance duty drawback rates on export of certain textile products, amend Duty and Tax Remission for Export (DTRE) scheme and revise rebate on export of cement in the coming budget.
It has also been proposed that Ghulam Khan Check-post be declared as authorised land route for export to Afghanistan, in addition to Torkham and Chaman.
The CBR is examining the ministry's budget proposals in the light of government policy of facilitation and simplification of law to encourage exports and increase the scope of DTRE registration from next year.
The Ministry of Industries has said that the present export rebate of Rs 54 per ton on cement and no drawback for export of clinker has led the export of cement by sea to a grinding halt.
To make the export of cement viable and increase the capacity utilisation of the industry, rebate on cement be increased from Rs 54 per ton to Rs 100 per ton and rebate on clinker be allowed @ Rs 46 per ton.
To facilitate and boost the exports of cement to Afghanistan, amendment has been proposed in the following clauses of SRO 137 (1)/2002 of March 7, 2002 issued by Ministry of Commerce for Zero rated exports and claim of duty drawback:
Clause 2(a): Set up a Pakistan Consulate at Khost for verification of arrival of consignments from Pakistan via Ghulam Khan Check post to verify the arrival of export consignments.
Clause 2(c): Add "Ghulam Khan" check post as authorised export land route in addition to Torkham and Chaman. Proposed by APCMA.
Duty and Tax Remission for Export (DTRE) rules notified vide SRO 450 (i) /2001 dated 18.06.2001 has given privilege to indirect exporters which are available to direct exporters. State Bank of Pakistan also extends the Exports Refinance Facility to the direct and indirect exporters at the same rates. Local taxable supplies of inputs for a manufacturer operating under SRO 554(1)/98 dated 12.06.1998 may also be extended to indirect exporters. Proposed by Denim Sector.
Grey fabric manufacturing and denim manufacturing are subject to 10 percent rebate under SRO 490(1)/2003. In order to encourage the value-addition, the rebate on denim manufacturing should be increased to 20 percent from existing 10 percent due to value-addition of around 30 percent to 40 percent whereas the value-addition of gray fabric is only 10 percent.
The ministry has also proposed that the mechanism for availing the concessionary rate of 10 percent customs duty on import of machinery not locally manufactured should be simplified. Proposed by Synthetic Fibre Sector/RCCI.
The duty drawback on PSF and Acrylic Staple Fibre (ASF) needs to be increased to Rs 8 per kg and Rs 11 per kg respectively. Duty drawback should be linked to value-addition. Proposed by Synthetic Fibre Sector.
Ministry of Industries has also proposed that ghee has been withdrawn from the list of items exportable under DTRE rules whereas vegetable oil has been added which is imported through Afghan Transit.
This is adversely affecting the local industry. Proposed by SCCI.
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