All Pakistan Textile Mills Association (APTMA) conveyed to the Federal Board of Revenue (FBR) to remove hurdles in the implementation of the Export Facilitation Scheme 2021.
A delegation of the APTMA visited the FBR Headquarters on Tuesday and discussed in detail the issues relating to the implementation of the Export Facilitation Scheme 2021.
The APTMA delegation highly appreciated the initiative of the FBR for launching the facilitation scheme. “The FBR is doing a good job to facilitate exporters”, sources quoted as delegation conveying to the FBR.
During a meeting with the tax authorities at the FBR House, the delegation of the APTMA also made some suggestions to further streamline the scheme to facilitate exports.
It is expected that the Export Facilitation Scheme 2021 will reduce the cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating sales tax refunds and duty drawbacks for the users of the scheme and shall attract more users and shall ultimately promote exports.
Under the scheme, indirect exports and local purchases of raw materials used in the manufacturing of goods to be exported have been allowed.
There are glitches in the software due to which the scheme is not being implemented, the APTMA delegation informed the FBR.
There are issues of understanding by the customs officers working at the level of the Model Customs Collectorates across the country which needs to be addressed, sources added.
The association is coordinating with the FBR to resolve software-related issues. A number of issues have been resolved by the FBR and the remaining would be done in due course of time, sources added.
Under SRO 957(I) 2021, the FBR allowed exporters to make domestic sales up to 20 percent of the goods manufactured from duties and taxes free input/raw materials imported under the Export Facilitation Scheme 2021.
The FBR has repeatedly amended the new scheme to incorporate suggestions of exporters and finally issued the updated procedure to facilitate all categories of exporters.
The powers, functions and role of the Input-Output Coefficient Organisation (IOCO) under the new scheme have also been revised.
Now, the IOCO after determining the input and output ratios and production capacity of the exporter will issue an “Analysis certificate” showing quantities of input goods required for the manufacture of the one unit of output goods and the ratio of wastages.
ENDS
