FBR releases revenue collection details of first two months
ISLAMABAD: The Federal Board of Revenue (FBR) has released the details of...
KARACHI: The Federal Board of Revenue (FBR) on Friday formally launched the Export Facilitation Scheme 2021.
The FBR issued an SRO 957(I)/2021 to implement the provisions for facilitating exports from Pakistan. Previously, the tax body issued draft law on July 9, 2021, inviting feedback from the stakeholders.
According to the latest SRO, the scheme would be available to businesses subject to the authorisation of import, warehouse and purchase of input goods under the rules and registration in the WeBOC and Pakistan Single Window facilities.
The facility would be available to persons registered under the Sales Tax Act, 1990, as manufacturer-cum-exporter, who make not less than 10 per cent value addition in the manufacturing and export of goods.
The facility would also be available to those manufacturers who act or intend to act as contracted vendors of foreign principal, and as toll manufacturers.
Further, commercial exporters and common export houses would also be entitled to avail the facility, according to the SRO.
Under the scheme, a taxpayer will be entitled to acquire input goods without the payment of Customs duty, federal excise duty, sales tax, or withholding tax.
The FBR said input goods may be imported duty-free and the taxes on filing of goods declaration giving the number of the authorisation granted. Further, the local input goods liable to the sales tax would be supplied against a zero-rated invoice.
Under the facilitation rules, the taxpayers have been allowed to import plant, machinery and equipment against the reduced rate of duty and taxes. The revenue board said if plant and machinery sold or otherwise disposed of before the expiration of three years from the date of imports, the rate of duty and taxes would be zero per cent.
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