KARACHI, Nov 14: The government is determined to offer more incentives to the exporters of raw material and manufacturers of the exportable goods to enable them secure more export orders, Collector Customs, Afzaal Qadir Qalbani said here on Wednesday.
In a meeting with the members of the Karachi Chamber of Commerce and Industry here, he said the drawback system was causing huge losses to the government due to over and under-invoicing. To avoid this problem, the government enforced no duty no drawback law in 1998, but it flopped due to certain reasons.
Realizing the problems and loopholes in the duty drawback system, the government issued SRO 450 in March this year under which duty and tax remission rules for exporters were introduced. This SRO aimed at implementing the no duty no drawback system and putting the drawback issue to an end.
Under these rules, he said, the importers needed not to pay any tax on the goods/raw materials used in manufacturing/ value addition of exportable goods.
If a manufacturer purchases something from the local market to be used in exportable goods, he will not be required to pay any tax.
More over the condition of six per cent minimum value addition has also been withdrawn and now even minor value addition can make an exporter qualify for the said rules/concessions.—APP
