ISLAMABAD: The Federal Board of Revenue (FBR) has pointed out an ambiguity in reconciliation of Rs 14 billion of Export Development Surcharge (EDS) pertaining to the 2022-23 with the Accountant General of Pakistan Revenue (AGPR).
The FBR is waiting for the response of the AGPR for the resolution of the issue of non-reconciliation of figures between FBR and AGPR. The FBR was collecting “Special Customs Duty” on exports of goods under the head of Export Development Surcharge.
Later, the EDS was directly transferred by the State Bank of Pakistan (SBP) to the EDF Account. As the EDS was not part of the FBR’s “Special Customs Duty,” this created an ambiguity resulting into non reconciliation of figures between FBR and AGPR.
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According to the FBR’s report, the figures of Customs Duty amounting to Rs. 931.727 billion also include “Special Customs Duty” amounting to nearly Rs. 14 billion that was levied as Export Development Surcharge (EDS) vide Section 11 of Finance Act 1991 on the exportation of the goods and further amended vide Ministry of Finance, Revenue Division’s SRO dated January 4, 2003.
The subject collection was a part of Customs Duties and reconciled by the FBR with the AGPR under the account head B- 02203 (Receipts).
However, vide Finance Act 2022, the Export Development Fund (EDF) Act 1999 was amended to provide that inter alia, the EDF shall consist of “whole receipts of Export Development Surcharge”.
Due to this amendment, the EDS is now directly transferred by the SBP to the EDF Account. The above amendments created an ambiguity resulting into non reconciliation of figures between FBR and AGPR and on the directions of Finance Division vide letter dated 25-01-2024, FBR has taken up the matter with the office of the AGPR vide letter C.No.32 (Recon) DR&S. FBR/2023-24(Pt.) dated 23-02-2024. However, no response has yet been received, the FBR added.
Copyright Business Recorder, 2024
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