ISLAMABAD: Auditor General of Pakistan (AGP) has recommended to Federal Board of Revenue to develop a mechanism for reconciliation of income tax on exports
FBR also directed the field formations to understand the spirit of rules and deduct income tax and export development surcharge from indirect exporters of Duty and Tax Remission for Exports (DTRE) scheme and exports made to Export Processing Zone Authority from the tariff areas.
Auditor General during the audit, it was observed that rules and procedures governing the collection and remittance of export development surcharge and income tax on exports had not been followed properly by the concerned organizations and issues like non utilization of export development surcharge, non-reconciliation of export development surcharge and income tax, non-observance of rules by State Bank of Pakistan and Export Processing Zone Authority (EPZA) and non-deduction of EDS and income tax, mis-presentation of export development surcharge and incomes tax on export in the financial statements of federal government, submission of fake Form-E by the exporters and adaption of diversified practices by the commercial banks have been emerged.
Auditor General also recommended that ministry of commerce should release the entire collection under the head export development surcharge for utilization for the specific purposes to boost the exports of country.
