KARACHI: The authorities concerned of Input-Output Co-efficient Organisation (IOCO) have temporarily halted the procedure of determining the Duty Drawback (DDB) ratio on exports due to the upcoming budget for fiscal year 2015-16, it is learnt here.
Sources informed Customs Today that the authorities concerned of the Federal Board of Revenue (FBR) have asked the authorities of IOCO to stop the procedure for determining the Duty Draw Back (DDB) till the announcement of upcoming budget.
The sources confirmed that the board asked IOCO Director Shahnaz Maqbool to immediately stop the ongoing exercise regarding determining the Duty Draw Back (DDB) ratio on exports, as budget for FY 2015-16 is just around the corner, and the DDB rates are likely to be changed in the upcoming budget.
The sources further said that the IOCO authorities concerned have completed 50 percent of the work in order to determine the Duty Drawback (DDB) rates on exports.
It is pertinent to mention here that the Input-Output Co-efficient Organisation (IOCO), while following the directives of the Federal Board of Revenue (FBR), started its working in order to determine the new Duty Drawback (DDB) rates in case of imports and exports, a few months ago.
The FBR authorities through a letter asked the IOCO authorities to determine the new rates of DDB and send a list in this regard to the board for further proceedings.
It may be mentioned here that the authorities concerned of IOCO were working on SROs 209, 210, 211 and 212 in order to determine new Duty Drawback rates on imports and exports, adding that 50 percent work had been completed in this regard.
The IOCO authorities concerned were also considering the FTA/PTA SROs in determining new Duty Drawback rates, as high DDB rates have been witnessed in some imports and exports cases with the difference of foreign exchange rates since the year 2009.
The sources further claimed that the board was of the view that amendments would likely be introduced in the concessionary regime SROs, which would certainly put an impact on DDB rates.
