ISLAMABAD    -   FBR has changed the rules to facilitate SMEs to enhance exports through Notification No. 1002(I)/2019 dated 06.09.2019 which has introduced amendments in original Notification 327(I)/2008 dated 28.03.2008.

This is in line with the directives of the Prime Minister of Pakistan to simplify the tax laws and to automate the business processes to bring transparency in the system. In order to implement this vision, FBR under the leadership of Chairman Mr Shabbar Zaidi, has simplify this export scheme and provided new incentives for the business community. The Small and Medium Enterprise Units working under this scheme is the largest export promotion scheme presently being used by the export sector.

Besides introducing amendments in the Export Oriented Units Scheme, the Federal Board of Revenue has also automated these processes in the computerised clearance system WeBOC. This will further reduce human interaction and create business friendly environment.

According to the details, the retention period of plant, machinery and capital goods is reduced from 10 years to 5 years. This will help export industry to keep abreast of latest developments and trends in the technology. If plant, machinery and capital goods are sold or otherwise disposed of before the expiration of five years, then different slabs of duty and taxes are introduced whereas after five years disposal of such plant and machinery is allowed without payment of duty and taxes. Similarly, disposal mechanism of spares and replacement parts have been provided and now these parts are allowed to be disposed off after three years.

To address delays in processing, tiers of administration have been reduced. Now Regulatory Authority is created and the powers have been devolved to Additional Collector for grant, revalidate or amend EOU licenses. In the new scheme, if there are any problems, the businessman can approach Chief Collector of Customs for redressal of their grievances.