October 19, 2002	Saturday	Sha'aban 12, 1423

ISLAMABAD, Oct 18: The delay in the implementation of the revised duty and tax remission for export (DTRE) rules has resulted in less response from manufacturers and exporters to opt for the scheme.

Well placed sources told Dawn that due to delay in revising the rules to make it more user friendly only 356 persons have so far opted for it.

According to the sources, despite the repeated demand from the industries to make amendments in the DTRE rules 2001, to make it more usable, the tax authorities were reluctant to consider all their proposals.

The decision to revise the DTRE rules was taken following the difficulties faced by the manufacturers working under the scheme, which was clear from the number of persons, who have so far opted for the same in the last one years.

The sources said the government had given assurance to exporters that the revised scheme would be implemented from the budget 2002-03 in consultation with all stakeholders. Commerce Minister Abdul Razak Dawood has already announced in trade policy 2002-03 that the DTRE rules are being revised to make them more user friendly.

The sources said that despite all the assurance, the CBR had yet to consider the genuine hardships being faced by the industries, while opting for the scheme.

According to the sources, until the demands of the industries were not materialized the response from manufacturers and exporters would remain less than satisfactory.

The sources said the government was reportedly not willing to allow the import of certain goods like polyester staple fibre (PSF) under the DTRE on the plea that same was supplied by a multinational company to the local exporters.

The exporters, however, were of the opinion that they could import the same PSF comparatively at cheaper price then the local one, the sources said. According to them, as long as the issue was not resolved it seemed difficult for the government to implement the DTRE rules.

With a workable DTRE regime, it was believed that the problem of delayed refunds, which has not only created serious liquidity problems for exporters but also hampered the growth of exports.

The sources said that friendly remission rules would enormously help the exporters as their refunds would not be tied up in duty, excise and sales tax elements of their input goods.