SIALKOT-The withdrawal of a facility by the State Bank of Pakistan (SBP) is affecting the exports as the industrialists are unable to import raw material from abroad for the production different goods. Sialkot Chamber of Commerce and Industry (SCCI) Zahid Latif Malik President stated this while talking to the newsmen.
Registered importers were earlier permitted vide para 2.5(1) of the Import Policy Order of the State Bank to make imports upto US$ 10,000 (or equivalent in other currencies) without opening of letters of credit or registering the indents/proforma invoices or orders with the Authorized Dealers, and make remittances there against through demand draft.
He added that State Bank of Pakistan (SBP) had abolished the facility of advance payment limit of US $ 10,000 on the temporary imports via SBP's Circular No.06/2018 issued on July 14, 2018. He expressed grave concern over the critical situation, and said that the step was leaving bad impact on the crisis-hit export industry of Sialkot.
"Export sector is heavily reliant on the import of raw material through this facility for value addition and re-exports, as the withdrawal of this facility would only hamper the smooth functioning of the Sialkot's export industry. Many of the foreign suppliers do not encourage Letter of Credit (LCs) and demanded advance payments to start production of the orders placed by the exporters," said SCCI President.
SCCI President Zahid Latif Malik further told newsmen that during an important meeting with a delegation of Sialkot Chamber of Commerce and Industry (SCCI) held on May 11, 2018, the Governor of State Bank of Pakistan (SBP) had assured the Sialkot business community of increasing the facility from US$ 10000 to US $ 25000.
The SCCI President added that instead of increasing the facility, the SBP has abolished it by putting the Sialkot exporters in hot water. He said that the SBP's step had created unrest among the exporters.
"After years of decline, the export sector had managed to show a little improvement which would be most adversely affected by the negative decision besides halting the increase in national exports proving to be disastrous for the Pakistan's economy," SCCI President said.
He urged the SBP chief to reconsider the decision of withdrawal, saying that the limit of advance payment strictly on temporary imports be allowed to US $ 25000 to boost the national export.
SEMINAR ON TAX AMNESTY SCHEME: Regional Taxation Office organised an awareness seminar on the FBR's Tax Amnesty Scheme. Addressing the participants, senior FBR officials stressed a need for some effective measures to promote awareness about the FBR's Tax Amensity Scheme besides motivating the people towards the scheme and removing all the hurdles and confusion and doubts of taxpayers regarding the Voluntary Declaration of Domestic Assets Ordinance, 2018 and Foreign Assets (Declaration and Repatriation) Ordinance, 2018 (Herein afterwards called as Tax Amnesty Scheme, 2018.
During the session different aspects of the scheme were highlighted regarding benefits and opportunities which taxpayers could enjoy by availing the Tax Amnesty Scheme 2018. Later, a question-answer session started during which different queries were raised by the participants which were properly and satisfactorily replied. The participants were concerned about the extension of the due date of Amnesty Scheme 2018 which was clarified that no further extension would be allowed in the last date of the scheme.
Furthermore, CPR correction was another main point raised by the participants which was replied in the light of circular C.No.1(9)/SS(BDT-IT)/2018-86417-R, dated 13.07.2018. Several other queries related to various aspects of the scheme like meaning of an assessment attaining finality, time lapse in deposit of tax/creation of CPR especially in Foreign Amnesty etc which were satisfactorily replied by the chair.