October 15, 2006	Sunday	Ramazan 21, 1427

ISLAMABAD, Oct 14: The Central Board of Revenue has declined to entertain a proposal of the ministry of industries and production seeking restoration of facilities for investors in export processing zones (EPZs).

A senior official told Dawn on Saturday that the CBR had withdrawn the incentives from EPZs to the detriment of the existing and potential investors.

However, the CBR was of the view that the restoration of the proposed incentives would create distortion in the economy to the disadvantage of the local industry, added the official.

The industries ministry sought withdrawal of export restriction imposed on units established at the EPZs and restoration 100 per cent export of manufactured items to tariff areas for home consumption on payment of customs duties.

It was also suggested that alternatively export up to 60 per cent of the production to tariff areas in Pakistan might be allowed. It was also demanded that the import of construction material by EPZ units might be allowed at zero rating in respect of excise duty and sales tax.