The budget 2021-2022 will bring good news for the import and export sector, the government is drafting major tax-related facilitative measures for exporters in the budget (2021-22) under a combined strategy to guarantee a substantial increase in exports of Pakistan.
Top government officers told a local website that the government is issuing a brand new simplified scheme for exporters in the approaching budget (2021-22) to allow the import of responsibilities and taxes free input and uncooked substances fed on in the production of export goods. Finance Bill 2021 could include a brand new scheme for exporters.
The exercising has begun to take a perspective on the brand new scheme. The scheme has been drafted and shared with the main exporter institutions for comments. The scheme could combine all current export schemes operated by the Federal Board of Revenue (FBR). Presently, different schemes are utilized by the exporters which could be incorporated right into a single scheme
The FBR has devised an incorporated method to boom exports including simplification of all export facilitation schemes, zero percent import obligations on 1,623 tariff lines of simple raw material/intermediate items, an automated system for submitting duty drawback claims, an upward revision in duty drawback charges for 8 sectors.
The import obligations on 1,623 tariff lines, pertaining to simple raw cloth and intermediate items had been decreased to 0 thru the Finance Act, 2020.
In pursuance of this method, additional customs obligations and regulatory obligations on 164 objects associated with the fabric sector, not manufactured in the country, had been additionally eliminated in collaboration with all of the stakeholders.
All these measures were undertaken with the objectives of deactivating the aggressive impact of the Covid-19 pandemic, especially for the exporters, and to make their products competitive in the international market.
Under the ingenuity of “Make in Pakistan”, the duty drawback rates for at least eight sectors were revised upwards by the FBR.
This is a positive initiative for the national goal to increase results in exports. The FBR is making all-out efforts to assist exporters by continuously making improvements in its laws and procedures.