The Central Board of Revenue (CBR) will not be able to withdraw 15 percent regulatory duty (RD) on the export of wheat flour to Afghanistan unless the tax authorities receives recommendations of the Ministry of Food, Agriculture and Livestock (Minfal) for the withdrawal of this levy.
A delegation of Pakistan Flour Mills Association (PFMA) met CBR Chairman Abdullah Yusuf on Thursday to take up the issue of regulatory duty on the export of wheat flour.
Lahore PFMA Central Committee Chairman Mumtaz Ali Shahikh told Business Recorder on Thursday the CBR will consider their request following approval from the ministry concerned. The tax authorities have informed the industry that Minfal concerned is the competent authority for dealing with this issue.
He quoted CBR chairman as saying that the duty was levied on the recommendation of Minfal. If the ministry recommends to the CBR for withdrawal of the regulatory duty, the CBR will have no objection to abolish it on the export of wheat flour.
The tax authorities have also conveyed to the Association that the CBR could not unilaterally withdraw the regulatory duty without obtaining viewpoint of the ministry concerned, Mumtaz added.
Meanwhile, other sources said the statutory regulatory order (SRO), which levied RD on the export of wheat flour would expire on January 3, 2006. If Minfal writes to CBR for not extending the notification, the tax authorities could abolish this duty. Otherwise, there is possibility of the extension in the notification.
Later, the delegation met Food and Agriculture Minister Sikander Hayat Bosan to update him about the situation arising due to levy of the duty. The delegation informed the ministry about the meeting with the Chairman CBR with particular emphasise on the implications the regulatory duty.
According to the industry, the government had imposed 15 percent regulatory duty on the export of flour due to which the export had been stopped to Afghanistan and other neighbouring countries. The flour industry is facing problems as the Afghan market has been captured by India and other countries, it said.
The PFMA had earlier demanded of the government to exempt wheat flour from regulatory duty as there was no shortage of wheat or wheat flour in the country. Pakistan was losing its market in Afghanistan because of regulatory duty as both China and Central Asian states are exporting duty-free flour to Afghanistan.
Meanwhile, official sources said the concerned association has been visiting the CBR for the last two consecutive days. Last day, the delegation met the CBR chief (export) Rozi Khan Barki. The delegation showed its willingness to meet the CBR Chairman to elaborate the issue.