Calculation of duty drawback: PTA exporters not providing worksheets to FBR

The Federal Board of Revenue (FBR) is reportedly not being provided worksheets by the Pure Terephthalic Acid (PTA) exporters, necessary to calculate duty drawbacks, official sources told Business Recorder. "The FBR is repeatedly asking all applicants to provide their worksheets so that the determination of duty drawback can be completed, but no response has been received so far," sources said.
The Ministry of Textile Industry, sources said, has also been requested to co-ordinate with all stakeholders regarding the provision of their balance sheet. According to sources, the National Tariff Commission (NTC) has urged the stakeholders to furnish the data about losses suffered by industry on account of escalation in cost of exporting due to prevailing security situation. However, due to poor response from the stakeholders, the Ministry of Textile Industry was also requested to pursue the matter.
Deputy Chairman of Planning Commission, Dr Nadeem-ul-Haq, sources said, recently informed the ECC that finalised Terms of Reference (ToRs) of the committee, constituted by ECC, had been conveyed to Cabinet Division for action. It was clarified by Cabinet Division that the ToRs were sent to the Ministry of Commerce, and not to the Cabinet Division.
According to sources, the Cabinet Division, after detailed discussion and hearing the viewpoints of different Ministries directed the ECC to finalise recommendations of the committee based on the ToRs, approved by Deputy Chairman, Planning Commission and submit the same in the next meeting of ECC. ECC also directed Ministry of Textile Industry to immediately take up the matter with all stakeholders regarding provision of required worksheets and data to FBR and NTC.
To mitigate the impact of above-tariffs on exports, duty drawback rates, a committee headed by Secretary Finance with Secretary Ministry Textile Industry and chairman FBR will decide the mechanism for refund of duties against deemed duties.
The ECC argues that within a period of six months, the NTC will give recommendations on whether deemed import drawbacks are warranted on account of losses suffered by industry due to escalation in cost of doing export business due to security situation. A committee headed by Deputy Chairman, Planning Commission, and comprising Chairman, Board of Investment, Secretaries Commerce, Finance, Textiles Industry, Industries, Board of Investment and Chairman, NTC, was constituted to review the tariff structure of the entire industry to determine optimal tariffs.