FBR amends rules to facilitate SME exports

ISLAMABAD: The Federal Board of Revenue (FBR), through a notification issued on Friday, said it has amended the Export Oriented Units and Small and Medium Enterprises Rules, 2008, in order to facilitate the SMEs.

“With an aim to implement the prime minister’s vision, the FBR, under the leadership of Shabbar Zaidi, has simplified this export scheme and provided new incentives to the business community,” the FBR statement read.

Besides introducing amendments in the said scheme, the FBR has also automated these processes in the computerized clearance system WeBOC. This will further reduce human interaction and create a business-friendly environment.

According to details, the retention period of plant, machinery and capital goods has been reduced from 10 years to 5 years. This will help the export industry to keep abreast of the latest developments and trends in technology.

Article continues after this advertisement

Different slabs of duty and taxes would be introduced if plant, machinery and capital goods are sold or otherwise disposed of before the expiration of five years. However, after five years, the disposal of such plant and machinery is allowed without payment of duty and taxes.

Similarly, a disposal mechanism for spares and replacement parts has been provided and now these parts are allowed to be disposed of after three years.

To address delays in processing, the tiers of administration have been reduced. A regulatory authority has been created and the powers have been devolved to the additional collector for grant, revalidate or amend EOU licences.

In the new scheme, if there are any problems, the businessman can approach the Customs chief collector for redressal of their grievances.

In order to alleviate the burden of getting the analysis card issued from the Input-Output Coefficient Organization (IOCO) or Engineering Development Board (EDB) against each license, the regulatory authority will issue the license without seeking recommendations from IOCO/EDB provided that the ratio in the analysis certificate is similar to the ratio determined in the previous year.

Moreover, the provision for issuance of the provisional analysis certificate has also been provided in the EOU Rules in case of delay caused by IOCO/EDB.


- Advertisement -
- Advertisement -

Must Read

Tech sector continues to thrive, prosper: WIPO report

Despite the economic devastation wrought by Covid-19, the new technology sector continued to thrive and prosper last year, the UN’s World Intellectual Property Organisation’s...