ISLAMABAD, May 16: The government is considering a proposal to allow a certain amount of duty drawback on export of goods under the duty and tax remission for export (DTRE) scheme to encourage the exporters to avail the facility.

Well-placed sources told Dawn on Friday the proposal was under consideration following the recommendations of exporters of various commodities.

The tax authorities would fix a certain amount of benchmark for duty drawback on export of various commodities, which was expected to be announced in the forthcoming budget for 2003-04, said the sources.

The government had introduced the DTRE scheme in 2001 with a purpose of ‘no duty and no drawback’ to import raw materials and other goods for their subsequent export.

The sources said during the last two years only around 300 exporters had formally registered under the scheme. “This indicates that exporters were unwilling to avail the facility for many reasons.”

The CBR has even introduced more amendments in the scheme at the recommendations of various trade bodies and association, but it again did not attract more exporters.

The sources said despite the expiry of SRO410 in December 2002 meant for temporary importation scheme, the tax authorities were still clearing goods under the SRO without duty and taxes.

“This kind of facility in violation of customs act is also one of the major reasons of low registration of exporters under the scheme,” added the sources.

According to the sources, the CBR invited comments and proposals from the various export collectorates for considering the duty drawback facility under the DTRE scheme.

The sources said the CBR would also receive input from the relevant stakeholders on the proposal before it was finalized for its final announcement.

The exporters were also demanding to do away with the negative list of DTRE scheme. They also want the government to allow all kinds of items under the scheme.

The government has banned import of polyester staple fibre (PSF), PTA and raw sugar under the scheme.