KARACHI: The Input Output Co-efficient Organisation (IOCO), while following the directives of the Federal Board of Revenue (FBR), has started working to determine new duty drawback rates in cases of imports and exports.
According to details, the FBR through a letter has asked the IOCO to determine the new rates of duty drawback and send to the FBR for further proceedings.
It is pertinent to mention here that the duty drawback rates were last determined in the year 2009 and after that during the last six years, no attention was paid in this matter.
Sources informed Customs Today that the Federal Board of Revenue (FBR) will issue government gazette/notification in this regard.
Sources further disclosed that the IOCO is working on SROs 209,210,211 and 212 in order to settle new rates on imports and exports, adding that over 150schedules are existed in aforementioned SROs and the entire exercise needs an adequate time to complete the entire process regarding determining the duty draw back rates.
Responding to a query, the sources further informed that the entire exercise would likely to be completed by the end of the current fiscal year i.e. 2014-15 and the final percentage of new duty drawback rates would be sent to the FBR by the end of June-2015.
The sources further said that the IOCO authorities is also considering the FTA/PTA SROs in order to determine new duty draw back rates, as high duty draw back rates have been witnessed in some imports and exports cases with the difference of FOREIGN EXCHANGE rates since the year 2009.
“The IOCO authorities after finalizing the duty drawback cases in concessionary regime SROs will send the report to FBR for issuance of notification pertaining to the new DDB rates”, sources added.
It may be mentioned here that the decision regarding the determination of new rates of duty draw back was taken in the Economic Council Committee (ECC) meeting of the Cabinet members, held recently in Islamabad.