ISLAMABAD: The Federal Board of Revenue (FBR) on Friday formally launched the Export Facilitation Scheme 2021.
The FBR issued an SRO 957(I)/2021 to implement the provisions for facilitating exports from Pakistan. Previously, the tax body issued draft law on July 9, 2021, inviting feedback from the stakeholders.
According to the latest SRO, the scheme would be available to businesses subject to the authorisation of import, warehouse and purchase of input goods under the rules and registration in the WeBOC and Pakistan Single Window facilities.
The facility would be available to persons registered under the Sales Tax Act, 1990, as manufacturer-cum-exporter, who make not less than 10 percent value addition in the manufacturing and export of goods.
The facility would also be available to those manufacturers who act or intend to act as contracted vendors of foreign principal, and as toll manufacturers.
Further, commercial exporters and common export houses would also be entitled to avail the facility, according to the SRO.
Under the scheme, a taxpayer will be entitled to acquire input goods without the payment of Customs duty, federal excise duty, sales tax, or withholding tax.
The FBR said input goods may be imported duty-free and the taxes on filing of goods declaration giving the number of the authorisation granted. Further, the local input goods liable to the sales tax would be supplied against a zero-rated invoice.
Under the facilitation rules, the taxpayers have been allowed to import plant, machinery and equipment against the reduced rate of duty and taxes. The revenue board said if plant and machinery sold or otherwise disposed of before the expiration of three years from the date of imports, the rate of duty and taxes would be zero percent.
Meanwhile, the Federal Board of Revenue (FBR) has set up a dedicated office for the monitoring of undocumented transactions of real estate agents and jewelers under the conditions imposed by the Financial Action Task Force (FATF).
According to sources, the FBR has taken initiatives to identify the use of black money in businesses of jewelry and real estate under the Anti-Money Laundering Act, 2010.
In this regard, the FBR, through a notification issued on July 28, 2021, established a Directorate General of Designated Non-Financial Businesses and Professions (DNFBPs). Under the Anti-Money Laundering Act, the revenue board is responsible for ensuring that the Directorate General of Designated Non-Financial Businesses and Professions, including real estate agents, dealers in precious metals and stones, and the FBR-supervised accountants comply with the anti-money laundering and counter financing of terrorism obligations.
The sources said the federal government had legislated to monitor DNFBPs in December 2020 to address the risk of proliferation financing and to comply with the requirements of the UNSCR and FATF’s recommendations.
The FBR has issued the guidelines for real estate agents and jewelers for reporting suspicious transactions, while dealing with their customers.
Further, to identify a suspicion that could be indicative of the money laundering or terrorism financing, FMU has prepared the red flags indicators that are specially intended as an aid for the real estate sector.
These red flags may appear suspicious on their own; however, it may be considered that a single red flag would not be a clear indicator of the potential ML/TF activity. However, a combination of these red flags, in addition to the analysis of overall financial activity and client profile may indicate a potential ML/TF activity.
To speed up the monitoring activities, the FBR, while establishing the directorate, posted staff simultaneously.
The sources in the Regional Tax Office (RTO) Karachi said it had organised awareness sessions with the real estate agents and jewelers to apprise them of the reporting requirement under the statute. – TLTP