SBP to start disbursing Rs1.089b to exporters

Amount is part of Drawback of Local Taxes and Levies order

ISLAMABAD: Just a few weeks away from the upcoming budget, the government is all set to carry out one of its key promises made in the previous fiscal plan.

According to the Ministry of Commerce and Industries, the State Bank of Pakistan will immediately begin disbursing Rs1.089 billion to exporters as part of its Drawback of Local Taxes and Levies order.

The federal government announced in its last budget to provide refund of local taxes to exporters of non-traditional sectors on free on board (FOB) values of their enhanced exports. The condition applies that the increase in exports should be of at least 10% and beyond over the previous year’s exports. The refund will be provided at the rate of 4% of the increase. The facility was also extended to textile exporters.

The finance division has already transferred the amount to SBP in this regard, said a press release issued by commerce ministry here on Wednesday.

The incentive meant for non-traditional export sectors was provided to fish and fish preparations, meat and meat preparations, spices, gloves, footballs and other sport goods, leather garments, other leather manufacturers, footwear, surgical goods, cutlery, electric fans, transport equipment, machinery specified for particular industry or other machinery or other electric equipment, furniture and pharmaceutical.

Ministry of Commerce, in pursuance to the above initiative, accordingly issued an order called the Drawback of Local Taxes and Levies Order 2015, through SRO 415(I)/2015 on March 15, 2015.

Under the SRO it was provided that the exporters of the mentioned commodities will submit the claims duly certified by the respective associations/chambers to the SBP along with the supporting documents as prescribed in the order to the nominated authorised banks by July 31, 2015.

Published in The Express Tribune, April 14^th,  2016.

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