• Director General IOCO Dr Mubashir Baig Mirza offered to start exercise in coordination with APTMA for upward revision of duty drawback rates fixed through a notification issues about 15 years ago in 2009.
• He agreed to the demand of upwardly revising the rates determined on the basis of tariff structure currency exchange rates and values prevailing at that time.
• The director general was addressing a workshop on the export related issues at APTMA Lahore on Thursday.

LAHORE: Input Output Coefficient Organization (IOCO) of Federal Board of Revenue (FBR) has offered to constitute a joint committee with All Pakistan Textile Mills Association (APTMA) to resolve all export related issues including Input Output Ratio (IOR), wastage determination and other export related irritants.

Director General IOCO Dr Mubashir Baig Mirza offered to start exercise in coordination with APTMA for upward revision of duty drawback rates fixed through a notification issues about 15 years ago in 2009. He agreed to the demand of upwardly revising the rates determined on the basis of tariff structure currency exchange rates and values prevailing at that time.

The director general was addressing a workshop on the export related issues at APTMA Lahore on Thursday. He was accompanied by Additional Director IOCO Ms. Ammara Durrani and other senior officers of FBR.

Senior Vice Chairman Mr. Kamran Arshad and Secretary General APTMA Mr. Raza Baqir welcomed him on the occasion. Leading textile exporters including Former Chairman APTMA Mr. Abdul Rahim Nasir, Mr. Anjum Zafar, Mr. Muhammad Ali and other senior members of APTMA were present on the occasion.

DG IOCO said that most of the issues are already being looked into by FBR through a massive exercise launched for automation of the Directorate General, standardisation and consolidation of product wise input output ratios, visible and invisible wastages.

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DG FBR agreed with APTMA that around 1.5% invisible wastages occur in textile sector which shall be duly reflected in the analysis certificates. He also endorsed that around one percent moisture wastages occurs in seasonal products like cotton and the same shall be duly intimated to Customs Collectorates and Audit Directorates for uniformity in application.

Earlier Senior Vice Chairman APTMA Kamran Arshad listed down the issues confronting the industry. He said the IOCO was determining consumption without considering condition of plant and machinery and does not account for process loss, visible and invisible losses occurring in textile industry.

Kamran Arshad proposed that IOCO should not cap wastages as the same vary from unit to unit depending on age and specifications of plant and quality of inputs used by different manufacturers.

He requested for elimination of delay in determination of input output ratio, issuance of Analysis Certificates due to shortage of staff, non-availability of technical experts and sector specialist and other factors.

Former Chairman APTMA Rahim Nasir stressed the need for amending rules, simplifying tax laws and automating business processes to bring transparency in the system, so that the SME sector of the value-added textile industry could be facilitated, and exports could be enhanced. He said matters regarding upward revision of Duty Drawback pending for long demands immediate attention of FBR to upsurge exports without any incidence of local duties and taxes.

He also called for simplifying the export scheme, providing new incentives for the business community to help export industry keep abreast of latest developments and trends in the technology.