TRC rec­om­mends merger of all ex­port pro­mo­tion re­lated no­ti­fi­ca­tions

Pakistan Observer - - ECON­OMY WATCH -

Cur­rency Sell­ing Buy­ing

MIAN AR­SHAD IS­LAM­ABAD— The Tax Re­forms Com­mis­sion ( TRC) has pro­posed that all ex­ist­ing ex­port pro­mo­tion re­lated no­ti­fi­ca­tions must be merged in a sin­gle no­ti­fi­ca­tion as well as the ex­porters cum im­porters may be sub­jected to sim­i­lar con­di­tions and lim­i­ta­tions on im­ports for the pur­poses of lo­cal pro­cess­ing for ex­port pur­poses. TRC ob­serve that a present a large num­ber of No­ti­fi­ca­tions/ SRO’s have been is­sued for pro­mo­tion of ex­ports through ex­port pro­cess­ing zones, spe­cial in­dus­trial zones, man­u­fac­tur­ing bonds, and tem­po­rary im­port and re­bate no­ti­fi­ca­tions. These no­ti­fi­ca­tion also re­quire main­te­nance of com­pli­cated records.

The gov­ern­ment con­sti­tuted TRC on Septem­ber 25, 2014 with Syed Ma­soud Ali Naqvi as Chair­man and held in­au­gu­ral meet­ing on Oc­to­ber 18, 2014. A well- placed of­fi­cial source at FBR told Pak­istan Observer here on Mon­day that the con­di­tions im­posed for such im­ports also vary to a large ex­tent. It is pro­posed that all ex­ist­ing over half a dozen no­ti­fi­ca­tions may be merged in a sin­gle no­ti­fi­ca­tion and the ex­porters cum im­porters may be sub­jected to sim­i­lar con­di­tions and lim­i­ta­tions on im­ports for the pur­poses of lo­cal pro­cess­ing for ex­port pur­poses.

More­over, the source added that a large num­ber of Pak­ista­nis have set up fa­cil­i­ties in Ja­pan for re­con­di­tion­ing/ re­pair of old and used ve­hi­cles for ex­port to UAE and from there to Pak­istan and other for­eign mar­kets. This im­port of re­con­di­tioned old and used ve­hi­cles via UAE re­sults in ex­tra cost in terms of for­eign ex­change.

There­fore, TRC rec­om­mended the gov­ern­ment may con­sider for al­low­ing set­ting up of ware- houses/ bonds for im­port of old and used ve­hi­cles di­rectly from Ja­pan and their lo­cal sale to el­i­gi­ble per­sons on pay­ment of levi­able du­ties and taxes, and ex­port to for­eign mar­kets after lo­cal re­con­di­tion­ing / re­pair of these old and used ve­hi­cles. There is a need to set up ware- houses of im­ported raw ma­te­ri­als, sub- as­sem­blies / sub- com­po­nents and as­sem­blies/ com­po­nents un­der the pri­vate/ part­ner­ship scheme in or­der to en­sure timely sup­ply of re­quired ma­te­ri­als at rea­son­able prices to small and medium man­u­fac­tur­ers cum ex­porters in or­der to im­prove the qual­ity of man­u­fac­ture goods for ex­port pur­poses.

KARACHI: Fed­eral Min­is­ter for In­dus­tries and Pro­duc­tion, Ghu­lam Mur­taza Khan Ja­toi be­ing pre­sented with a me­mento upon his visit to Pak­istan In­sti­tute of Man­age­ment.

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