Duty, tax concessionary regime for export promotion launched


ISLAMABAD: Ministry of Commerce has notified concessionary regime for promotion of exports, will be available during next three years.
The ministry issued SRO 711(I)/2018 to notify Local Taxes and Levies Drawback (Non-Textile) order, 2018.
The ministry said that the drawback under this order shall be provided for the shipments made from July 01, 2018 till June 30, 2021(both days inclusive) on the following terms and conditions, namely:
(a) fifty percent of the rate of drawback shall be provided without condition of increment in exports of goods
(b) remaining fifty percent of the rate of drawback shall be provided, if the exporter achieves an increase of ten percent or more in exports during the financial year 2018-2019, as compared to the financial year 2017-2018 or exports in financial year 2019-2020, as compared to financial year 2018-2019 or in financial year 2020-2021, as compared to financial year 2019-2020;
(c) the actual rate of drawback against clause (b) shall be determined on the basis of annual performance of the exporter, but in order to improve his cash flow, the disbursement against clause (b) shall be allowed on the performance during July-December of each year, subject to submission of a bank guarantee that the exporter shall return the excess amount, in case his annual exports are less than the eligibility criteria stipulated in clause
(b); and
(d) an additional two percent drawback shall be allowed for exports to non-traditional markets of the countries relating to Africa, Latin America, non-EU European countries, commonwealth of Independent States and Oceania at the time of submission of claims mentioned in clause (a).