Summary: The government has reviewed proposals to introduce facilitation measures in the Export Facilitation Scheme (EFS) for exporters. The proposed changes include easing security requirements, changing the validity period of permits, improving access for new exporters and reducing compliance costs. The government says the procedure will be simplified while ensuring protection of revenue and uniform implementation of rules.
Islamabad: The government has reviewed the proposed amendments to simplify the Export Facilitation Scheme (EFS) for exporters and improve the access of businesses to it.
The fifth meeting of the committee constituted by the Prime Minister in this regard was held at the Ministry of Finance under the chairmanship of Minister of State for Finance and Railways Bilal Azhar Kayani. The meeting was attended by representatives of the Ministry of Commerce, the Federal Board of Revenue (FBR), exporters’ organisations and business representatives.
During the meeting, various proposals were considered to simplify and make transparent the procedure of the scheme, reduce compliance costs and promote new investment and local value addition in the export sector.
The proposed amendments include proposals to simplify the classification of exporters, make the period of permits reasonable and improve access to the scheme for new and existing exporters.
The meeting also discussed easing security conditions and facilitating exporters who comply with the rules. However, it was agreed to maintain necessary safeguards to prevent possible misuse of the scheme.
Under the Export Facilitation Scheme, eligible exporters get the facility of advance payment of certain taxes on the import of raw materials, other essential items and certain machinery used in the manufacture of export products. To avail this facility, it is necessary to use imported goods in export production.
Addressing the meeting, Bilal Azhar Kayani said that the rules and eligibility conditions of the scheme will be equally applicable to all exporters and no special exemption will be given to anyone.
He said that the government will take steps to simplify the procedures and reduce business difficulties, however, no compromise will be made on the protection of national revenues.
The Minister of State expressed his determination that the process of consultation with exporters and trade organizations will continue so that the scheme can be improved according to the real needs of the business sector.
According to the Ministry of Finance, the proposed changes aim to facilitate export activities, encourage investment and link government incentives to actual export performance. However, these amendments are currently under consideration.
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