KARACHI, Feb 4: Pakistan Cloth Merchants Association (PCMA) chairman Ahmed Chinoy has said that although the Duty and Tax Remission for Export (DTRE) system is beneficial for export, the exporters are unable to benefit fully from these rules because of some anomalies.

The PCMA chief pointed out that out of estimated 250,000 sales tax payers 300 are registered under DTRE, which shows that exporters are discouraged to register themselves under these rules because of unnecessary hurdles and rules being complicated.

In a statement issued on Tuesday, Ahmed Chinoy urged the CBR to simplify these rules and make it exporters-friendly so that the majority of exporters could benefit from the DTRE regime.

He termed the proportionate input tax adjustment claim for electricity and gas unhelpful to them. PCMA chief asked the CBR to remove the condition the sales tax registration number mentioned on the gas, electricity bills and the exporter under DTRE should be allowed 100 per cent input tax adjustment on the basis of the address of the registered person on bill.

Ahmed Chinoy said that there is a major flaw in the Duty and Tax Remission for Export rules as it does not have provision of customs duty drawback and refund adjustment on local purchases and supplies. If this obstacle is not removed, the exporters will not be able to benefit from the DTRE rules and will continue to be discouraged to register themselves under these rules, he added.

The exporters may also be allowed to enhance the quantities allowed in their licence on the basis of their future estimated export performance and there should be more flexibility allowed in its renewal.