NBR to allow exporters to import duty-free raw materials: Chairman
From now on, this meeting will be held every second Wednesday a month.
The National Board of Revenue (NBR) has taken a move to introduce duty-free raw material import system for exporters who do not have any bond license.
"We have already started the process," NBR chairman Md Abdur Rahman Khan told a meeting today (10 September).
The meeting titled "Meet the Business" was arranged for the first time to get feedback from the business people regarding their problems at the field level.
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From now on, this meeting will be held every second Wednesday a month.
The NBR chairman said that the exporters who do not have the bond license can import their raw materials without giving any duty.
The exporters will have to get a guarantee from any bank saying that the imported raw materials will be exported.
"It will not be sold in the local market or will not be used for any other purpose," he said.
The revenue boss said that the policy has already been sent to the legislative division for final approval.
"Hopefully it will get the final nod in the next week," he said.
The bond system allows export-oriented enterprises to import raw materials and accessories duty-free. These raw materials are stored in bonded warehouses and used for manufacturing products meant for export. If a bonded company sells these imported goods in the domestic market instead of exporting them, they are required to pay the substantial import duties.
The NBR chairman also said that his organisation will start work for the bond audit within a short time.
But he said that if the bond system can be made automated, then it would be easy to go for a risk-based audit.
"The main aim behind these moves is to ensure that the compliant taxpayers are not getting pain," he said.
Abdur Rahman Khan said that the tax payment for the corporate taxpayers will go online from next year, and the NBR is working effortlessly for this purpose.
Criticising the heavy tax exemption culture in the country, he said that there will be no tax exemption in the coming days unless it is essential for the policy level.
"The power of the NBR to give tax exemption has been removed; now only the parliament can approve any tax exemption," he said.
He also put emphasis on coming out of the tax exemption culture gradually.
The NBR chairman said that if the taxpayers see that their taxes are being used in the country's welfare on a priority basis, then they will be encouraged to pay their taxes properly.
He also emphasised on punishing the NBR officials for their unnecessary harassment to the taxpayers.
