ISLAMABAD: Government directed the Ministry of Commerce (MoC) to release the entire collection under the head of export development surcharge for utilization for the specific purpose to boost the export of the country and develop a mechanism for the reconciliation of export development surcharge.
Sources told Customs Today it was observed that rules and procedures governing the collection and remittance of export development surcharge and income tax on exports had not been followed properly by the organizations concerned.
Now in the light of the government instructions, Federal Board of Revenue directed the field formations to understand the spirit of rules and deduct income tax and export development surcharge from indirect exporters of DTRE scheme and exports made to Export Processing Zones from the tariff areas and develop a mechanism for reconciliation of income tax on export and take the matter of opening of new heads of account, with the Controller General of Accounts, for export development surcharge and income tax on exports.
The government also instructed to the State Bank of Pakistan to seriously look into the issue of retention of export development surcharge by banks and taken stern action against submission of Form –Es by the exporters and banks should also be directed to abide by the laws in letter and spirit.
The govt to revamp the existing system of collection and remittance of export development surcharge and income tax on exports.