The News the Federal Board of Revenue has increased the sales tax refund repayments by over 57% against exports of various steel products.

In a notification issued, the revenue body has enhanced the repayment-cum drawback rates to PKR 6,447 from PKR 4,100 on exports of ingots or billets other than imported or of Pakistan Steel Mills or Peoples Steel Mills.

The repayment rate for mild steel re rolled products manufactured from ingots and billets other than imported has been increased by 55% to PKR 7,357 from PKR 4,717. Similarly, the repayment on exports of mild steel re-rolled products manufactured from imported billets or billets of Pakistan Steel Mills or Peoples Steel Mills has been increased to PKR 8,526 from PKR 5,460. The FBR amended the rate in the notification issued in March 2008.

Mr Shamoon Baqir Ali president of Karachi Iron and Steel Merchants Association said that the FBR has rationalized the input adjustments in line with the depreciation of the local currency. The import of raw materials is on percentage basis and dollar terms. However, with the rupee depreciation the repayments rate declined.”

The local currency during the last four years witnessed sharp decline against the dollar. The rupee fell by 51.19% to 94.66 per dollar on Tuesday since March 28th 2008 when the first prime minister of present government sworn in.

The Federal Board of Revenue said that the exporters should file claim for repayment of sales tax for the repayment on a monthly basis. The commercial exporters shall be entitled to the repayment of sales tax provided they make direct procurements from the registered persons who are subject to sales tax rules.

Source - The News.com

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