Islamabad: The Federal Board of Revenue (FBR) has announced the new ‘Export Facilitation Scheme’ (EFS) to encourage exports from Pakistan, according to news sources.
The decision was made in a high-level meeting called by FBR Chairman Syed Shabbar Zaidi in the FBR House. During the meeting, the chairman was informed of the automation and system compatibility of various export schemes and procedures (from application filing and approvals, to import and export of raw materials). He was told that the EFS will promote Ease of Doing Business, minimise physical interaction between the departments and the exporters, and reduce lead time.
The chairman stressed for the promotion of these schemes to benefit the maximum number of exporters. He also asked for these schemes to be merged in one comprehensive scheme that’s easy to use, trade efficient and simple.
Under the Export Oriented Scheme: duties and taxes on all imported goods, including machinery, are exempted (conditions applied).
Under Manufacturing Bond Scheme: manufacturers and exporters can establish manufacturing bonds, and import raw materials for production without upfront payment of duty or taxes.
Under Duty & Tax Remission of Exports Scheme (DTRE); there will be no duties and tax payments, or duty drawbacks. Commercial operators and manufacturers can both get DTRE approvals.
Under Temporary Importation Scheme; the suspension or exemptions from duties/ taxes requires securities for accessories (labels, buttons, zippers), importation for manufacture, and exportation of goods.
Moreover, new Export Processing Zones (EPZ) are being established to encourage industrialisation and export businesses by facilitating the investors, leading to national economic growth. The imported and exported goods through EPZs are exempt from duty and taxes.
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