PTI government gives yet another incentive to the exporters

PTI government gives yet another incentive to the exporters

ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approved a technical supplementary grant of Rs30 billion for the FBR Refund Settlement Company Limited in order to ensure payment of sales tax refunds to exporters.

The proposal of technical grant for the proposed company was forwarded by the Federal Board of Revenue.

Meanwhile, the ECC, which was headed by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh, also approved the renaming of ‘Zero-Rated sector’ as ‘Export-Oriented Sectors’.

According to the Ministry of Commerce, since the removal of the zero-rated regime through an SRO in June 2019, the continuation of subsidized gas/electricity to the identified sectors has become an issue.

For continuation of the facility, it has been renamed as ‘Export-Oriented Sectors’. The erstwhile zero-rated sectors, namely textile (including jute), carpets, leather, sports and surgical goods would be now included in Export-Oriented Sectors.

The ECC meeting approved amendments in 18 laws and 25 legal procedures to simplify and facilitate investments in oil exploration and production. The amendments in the laws were proposed by the Energy Task Force and other stakeholders.