ISLAMABAD: Despite offering duty drawback schemes and removal of duty on import of raw material, the exports from Pakistan are declining as compare to previous years, which is a matter of concern.
Chief Custom Exports Arslan Subuctageen has stated this while giving an exclusive interview to Customs Today, adding that the incumbent government and the Federal Board of Revenue (FBR) have taken measures to arrest the falling exports.
The FBR is bringing various mechanisms to enhance the exports, including issuance of duty drawbacks, introducing bonds and promotion of small and medium enterprises under SRO 327 and 492, Arslan said, adding that the government has also removed duty on import of raw material to raise the production of value added products.
He clarified that the FBR is trying to pay refund claims as soon as possible as Rs 8.4 billion refunds are in the shape of duty drawsback, Rs 18 billion under the head of duties and taxes from DTRE, Rs 13.37 billion in the form of manufacturing bonds and Rs 11.11 billion refunds in the wake of SRO 492 and 327.
In order to increase the leather garments exports, the FBR has lowered taxes and increased the duty drawsback rates on it under SRO 923 102015, he said, adding that tax rates for hosiery sector has also been revised.
He highlighted that Pakistan’s trade was increasing with neighbouring country Afghanistan and exporters are allowed to export of meat, fruits, vegetables and dairy products.
He said that the matter of return of duty drawback has been taken under serious consideration as Prime Minister Nawaz Sharif himself took a notice of it in a meeting held on September 11, 2015. In answer to a question, he said that Director General of Customs Valuation has been asked to re-determine the value of items.
He further stated that exports were witnessing downward trend due to the increase in cost of production as power tariff is increasing day by day. He said that lack of subsidies to export oriented sectors is neutralizing the benefits of GSP plus status.
