The State Bank of Pakistan (SBP) will immediately begin to disburse Rs 1 billion to settle in full fiscal year (FY2015) enhanced-export duty drawback of local taxes (DLTL) claims to the exporters.
The finance division has released an amount of Rs 1.089 billion to the SBP for disbursement to clear the claims of DLTL orders 2015. On the recommendation of ministry of commerce, the federal government announced in the budget to provide refund of local taxes to exporters of non-traditional sectors on FOB values of their enhanced exports if increased by 10 per cent and beyond over previous year’s exports at the rate of 4 per cent of the increase. This facility was also announced for textile exporters.
The incentive to non-traditional port 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 electric equipment, furniture and pharmaceutical.
The ministry of commerce in pursuance of 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 said SRO, it was provided that the exporters of the above commodities will submit the claims duly certified by the respective associations and chambers to the SBP along with the supporting documents as prescribed in the order to the nominated authorised banks by July 31, 2015. During the said period, claims amounting to Rs 1.089 billion were received by the SBP through the commercial banks for payment in the favour of various exporters.
