KARACHI: The State Bank of Pakistan (SBP) has officially declared the final deadline for resubmission of duty drawback claims, affecting both the textile and non-textile sectors.
As part of its ongoing efforts to streamline financial processes and ensure compliance, the SBP has set September 30, 2023, as the ultimate date for resubmission.
The central bank issued a statement drawing the attention of Authorized Dealers (ADs) to four significant EPD Circular Letters pertaining to this matter and the various amendments issued over time. These circulars have been instrumental in regulating the duty drawback claims process:
Local Taxes and Levies Drawback (Non-Textile) Order, 2017
SBP Instructions: EPD Circular Letter No. 24 dated 19-12-2017
Notification/ SRO: S.R.O. No. 1248(I)/2017 dated 14-12-2017
Duty Drawback of Taxes Order 2017-18 (Textile)
SBP Instructions: EPD Circular Letter No. 25 dated 19-12-2017
Notification/ SRO: Notification No. 1(42-A)TID/17-TR-II dated 12-12-2017
Local Taxes and Levies Drawback (Non-Textile) Order, 2018
SBP Instructions: EPD Circular Letter No. 19 dated 24-10-2018
Notification/ SRO: S.R.O. No. 711(I)/2018 dated 08-06-2018
Duty Drawback of Taxes Order 2018-21 (Textile)
SBP Instructions: EPD Circular Letter No. 21 dated 26-11-2018
Notification/ SRO: Notification No. 1(42-B)TID/18-TR-II dated 03-08-2018
In line with the Ministry of Commerce (Textile Wing) letter No. 1(42-B)/TID-18-TR-II dated July 18, 2023, it has been decided that September 30, 2023, will serve as the ultimate cutoff date for resubmission. The following discrepant cases are to be resubmitted to SBP-BSC:
Case-to-Case Claims: This includes claims under para 1(4)(a) & 1(4)(d) of the scheme at Serial No. 3 and para 1(2)(a) & 1(2)(d) of the scheme at Serial No. 4 for FY 2020-21.
Incremental Claims: Incremental claims under para 1(2)(b) and 1(4)(b) for schemes mentioned at Serial No. 1 to 4 above.
All banks are strongly urged to ensure the resubmission of these claims well in advance of the deadline, specifically by the close of business on September 30, 2023. This measure aims to facilitate a smoother and more efficient process for all stakeholders involved.
The SBP has clarified that all other instructions related to this subject will remain unchanged. Authorized Dealers are also instructed to disseminate this information to all their constituents, ensuring widespread awareness of the upcoming deadline.
The SBP’s announcement underscores its commitment to effective governance and financial regulation within Pakistan’s economic landscape, emphasizing the importance of adhering to prescribed timelines and procedures
