AGL 39.58 Decreased By ▼ -0.42 (-1.05%)
AIRLINK 131.22 Increased By ▲ 2.16 (1.67%)
BOP 6.81 Increased By ▲ 0.06 (0.89%)
CNERGY 4.71 Increased By ▲ 0.22 (4.9%)
DCL 8.44 Decreased By ▼ -0.11 (-1.29%)
DFML 41.47 Increased By ▲ 0.65 (1.59%)
DGKC 82.09 Increased By ▲ 1.13 (1.4%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 72.87 Decreased By ▼ -1.56 (-2.1%)
FFL 12.26 Increased By ▲ 0.52 (4.43%)
HUBC 110.74 Increased By ▲ 1.16 (1.06%)
HUMNL 14.51 Increased By ▲ 0.76 (5.53%)
KEL 5.19 Decreased By ▼ -0.12 (-2.26%)
KOSM 7.61 Decreased By ▼ -0.11 (-1.42%)
MLCF 38.90 Increased By ▲ 0.30 (0.78%)
NBP 64.01 Increased By ▲ 0.50 (0.79%)
OGDC 192.82 Decreased By ▼ -1.87 (-0.96%)
PAEL 25.68 Decreased By ▼ -0.03 (-0.12%)
PIBTL 7.34 Decreased By ▼ -0.05 (-0.68%)
PPL 154.07 Decreased By ▼ -1.38 (-0.89%)
PRL 25.83 Increased By ▲ 0.04 (0.16%)
PTC 17.81 Increased By ▲ 0.31 (1.77%)
SEARL 82.30 Increased By ▲ 3.65 (4.64%)
TELE 7.76 Decreased By ▼ -0.10 (-1.27%)
TOMCL 33.46 Decreased By ▼ -0.27 (-0.8%)
TPLP 8.49 Increased By ▲ 0.09 (1.07%)
TREET 16.62 Increased By ▲ 0.35 (2.15%)
TRG 57.40 Decreased By ▼ -0.82 (-1.41%)
UNITY 27.51 Increased By ▲ 0.02 (0.07%)
WTL 1.37 Decreased By ▼ -0.02 (-1.44%)
BR100 10,504 Increased By 59.3 (0.57%)
BR30 31,226 Increased By 36.9 (0.12%)
KSE100 98,080 Increased By 281.6 (0.29%)
KSE30 30,559 Increased By 78 (0.26%)

The World Bank (WB) has asked the Central Board of Revenue (CBR) to withdraw the Temporary Importation Scheme, simplify the Duty and Tax Remission for Export (DTRE) rules, and ensure speedy payment of duty drawback to exporters.
Sources told Business Recorder on Tuesday that WB had expressed concern over the existing schemes permitting duties/taxes-free import of raw materials used in the manufacture of export products.
The WB said that one of the important objectives of duty and tax rebate schemes is to encourage the newly registered small exporters. This is critical for export diversification. The feedback from small exporters indicates that the rebate schemes are not effective.
The World Bank recommended that the CBR should continue to simplify the rules and notifications related to duty drawback and improve the prevailing system.
In budget 2005-06, the CBR had reduced duty drawback notifications from 110 to four and clubbed 723 duty drawback rates into 465. The measure is likely to help the small exporters, who are less able to make through the maze of complicated duty drawback notifications.
The revised DTRE scheme, notified in budget 2005-06, has incorporated changes to address a number of problems being faced by the exporters under the old scheme. The CBR should further improve the DTRE scheme and take away schemes like Temporary Importation to avoid duplication. The board should also launch awareness campaign about the revised DTRE scheme.
According to World Bank, the delay in the payment of duty drawback to exporters hurts export competitiveness. This is one of the reasons that most of the countries have adopted sales tax zero-rating regime to avoid payment of refund to exporters.
It is necessary to have a well-functioning duty drawback system to increase exports of strategically important items. Duty drawback scheme is the only tool of duty-free access to inputs/raw material.

Copyright Business Recorder, 2006

Comments

Comments are closed.