ISLAMABAD, Dec 27: The government is likely to extend the conditional exemption from customs duty and sales tax on temporarily imported goods for its subsequent exportation, said a senior official.

A senior official in the commerce ministry told Dawn on Thursday the ministry had moved the proposal to extend the facility for yet another one or two years for the registered exporters. The proposal was under consideration at the request of businessmen from Lahore and Karachi asking for extension in the facility.

The temporary importation scheme was due to expire by December 31, 2002, which was effective from August 7, 1998, said the official.

When asked, a senior official in the Central Board of Revenue told Dawn the facility could not be extended further as committed with the donor agencies.

The International Monetary Fund has asked the finance ministry not to extend all the time bound temporary importation schemes annouced earlier any further as part of the conditionalities of Poverty Reduction and Growth Facility (PRGF).

According to the official, the CBR was of the opinion that the exporters should avail the facility of “no duty no drawback scheme” annouced in 2001.

The tax authorities have revised the duty and tax remission for export (DTRE) scheme for exporters to make it more user friendly. The official said the CBR had even allowed exporters to claim duty drawback under DTRE on electricity and gas used in the manufacturing of goods on its export.

They were also allowed that in case they could not make to export their goods under DTRE, on payment of penalty and full payment of duty, they could even sell it in the local markets.

The DTRE scheme was annouced in 2001, but till date only 300 exporters have registered themselves under the scheme with the department to avail the facility.

The official said the CBR was planning to make the scheme more user friendly so that maximum exporters could avail the facility, adding in case the facility was extended, then no person would opt for the DTRE scheme.

Tax authorities have asked the businessmen to come up with their proposals and suggestions.