ISLAMABAD, July 29: The government is likely to allow full payment of all taxes to exporters on importable goods for its subsequent export to another country.

Well-placed sources told Dawn on Monday that the government was expected to announce the decision in this connection through a notification shortly. The decision was a part of the trade policy 2002-03.

Under the scheme, all taxes — customs duty, sales tax and withholding tax — paid at the import stage on import of all goods except those which were made ban will be refunded to exporters.

According to the sources, this facility would only help in promoting trading activity, but at the same time it might cause a loss to the production of the local industry.

The scheme is believed to have been under consideration to promote trading with the neighbouring country, Afghanistan.

Sources further said that the exporters would now import goods specially electronic items from foreign countries instead of buying the same from the local market for its subsequent export to Afghanistan.

Earlier, it was expected that the government would announce in the trade policy the free imports of all items under the Afghan Transit Trade (ATT) facility specially the electronic appliances to Afghanistan.

The major items, which were banned last year under ATT scheme included electronic appliances — TV, refrigerators, etc., and were now in major demands in Afghanistan.

According to sources, the banned items under the ATT would now be easily imported under the new scheme. However, it was feared that these items might be smuggled back to Pakistan through the porous boarders between the two countries, sources said.

With the facility, the trading activity would enhance at the cost of the local industry, they added.