State Bank to disburse Rs1.089 billion to settle DLTL claims

09:06 AM | 14 Apr, 2016
State Bank to disburse Rs1.089 billion to settle DLTL claims
KARACHI (Staff Report) - State Bank of Pakistan has announced to immediately start disbursing Rs1.089 billion to settle in full FY2015 enhanced-export duty drawback of local taxes (DLTL) claims to the exporters.

On the initiative and advocacy of Ministry of Commerce, the Federal Government announced in the Budget to provide refund of local taxes to exporters of non-traditional sectors on FOB values of their enhanced exports; if increased by 10% and beyond over previous year’s exports at rate of 4% of the increase. This facility was also announced for textile exporters.

The incentive to non-traditional port sectors was provided to fish and fish preparations, meat and meat preparations, spices, gloves, footballs and other sport goods, leather garments, other leather manufacturers, footwear, surgical goods, cutlery, electric fans, transport equipment, machinery specified for particular industry or other machinery or other electric equipment, furniture and pharmaceutical.

Ministry of Commerce in pursuance to the above initiative, accordingly issued an order called the Drawback of Local Taxes and Levies Order 2015, through SRO 415(I)/2015 on March 15th, 2015.

Under the said SRO it was provided that the exporters of the above commodities will submit the claims duly certified by the Respective Associations/chambers to the State Bank of Pakistan (SBP) along with the supporting documents as prescribed in the Order to the Nominated Authorized banks by 31st July, 2015.

During the said period claims amounting to PKR 1.089 billion were received by the SBP through the commercial banks for payment in the favor of various exporters. It is very encouraging that the Finance Division has released an amount of PKR. 1.089 billion to SBP for disbursement to clear the claims of DLTL orders 2015.