APTPMA for export proceeds realisation with customs rebate refund

Updated 01 Jun, 2020

FAISALABAD: Central Chairman of All Pakistan Textile Processing Mills Association (APTPMA), Muhammad Pervaiz Lala, strongly demanded that Customs Rebate Claims should be refunded along with the export proceeds realisation, which would yield positive results.Commenting over the prevailing situation, he said that Custom Rebate Claims should be refunded electronically through State Bank of Pakistan at the time of realisation and payment of export proceeds. This proposal is not only workable but the most pragmatic because now E-Form is being done electronically. This should also be done efficiently as impact of Custom Rebate is below 1 percent of total amount, he added.Pervaiz Lala said that the current rebate rate is approx. 0.50 percent and 0.75 percent of total export amount.Industries apply for customs rebate after realisation of export proceeds. Custom duty is charged when exporters buy raw material. Time period of other activities is as follows: 4 months is manufacturing period 6 months is realisation time. Due to availability of liquidity and smooth cash flow, the confidence of exporters will be boosted to enhance their exports and cement their business ties with the foreign counterparts to capture true business potential, he added.Central Chairman, Muhammad Pervaiz Lala, proposed that FBR should withdraw its SRO 747(I)/2019 dated 9th July, 2019 so that exporters operating under Export Oriented Units can procure input goods without taxes. Further it is also proposed that industries, registered in Export Oriented Units (EOU) and export 80 percent of their annual production, should be supplied utilities: gas and electricity without sales tax at zero rate, he added and said that to bring EOU at par with units in EPZs.He explained that the EOU under SRO327 was introduced on the pattern of Export Processing Zone (EPZ) where there is no taxes on buying of locally procured input goods and no taxes on utilities. Industries registered in EOU are liable to export 80 percent of their annual production but regretfully Federal Board of Revenue (FBR) vide SRO 747(I)/2019 dated 9th July, 2019 has withdrawn the exemption of sales tax and federal excise duty on buying of locally procured input goods by exporters operating under EOU and Small and Medium Enterprises Rules, 2008 under SRO327 by omitting the clause 10 sub-section (b) and (c) of the said Rules.

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