ISLAMABAD (September 01 2005): The Central Board of Revenue (CBR) has extended the date for 'amnesty scheme' up to September 30, 2005 for clearance of past liabilities by importers-cum-manufacturers who were unable to achieve 'export targets' given in various customs concessionary SROs.
However, these export industries have to pay 5 percent of their total liabilities during the extension period. It is expected that CBR would generate a reasonable amount from the 'amnesty scheme', which will contribute to the overall customs collection in 2005-06.
The CBR has amended SRO 554(I)/98 of June 12, 1998 through issuance of two notifications here on Wednesday.
According to the SROs, the 'amnesty scheme' would be applicable on the imports made before, on, or after June 12, 2004.
Sources told Business Recorder that it was necessary for the export industries to utilise the duties- and taxes-free raw materials and inputs in the production of finished products to be exported under concessionary notifications. For this purpose, export targets were given in the notifications for compliance. In case the importers were unable to achieve the targets, they would have to pay full amount of duties and taxes applicable at the time of import.
Under the new amnesty scheme, the CBR has given an option to all persons to submit only 5 percent of the total liabilities of duties and taxes in case the export targets were not achieved. The CBR will withdraw cases framed against such persons on payment of 5 percent of total duties and taxes involved. However, they had to pay the duties and taxes by June 30, 2005 to avail the amnesty scheme. Now, the date has been extended to September 30, 2005 and the percentage of payment of 2.5 percent of total liabilities has been raised to 5 percent.
This may be termed as a major relief because 'exports targets' have not been achieved in many cases in the past. The decision will particularly facilitate the concessionary imports made by the textile units in the past.
Under SRO 554(I)/98, importers of plant and machinery were given option to pay one percent per year or 5 percent on total in case they had failed to fulfill the conditions of exports targets as per conditions of the notification.