Banks to deduct EDS from export proceeds

ISLAMABAD, Jan 3: The Central Board of Revenue has decided to deduct export development surcharge (EDS) through the bank upon receiving remittances against export proceeds.

An official source told Dawn on Friday that the decision was aimed at facilitating exporters, who were currently paying EDS at the time of shipment of their goods.

The decision was annouced in the trade policy 2002-03 by the then commerce minister Abdul Razak Dawood.

The sources said that it was found that payment of EDS at the time of shipment was causing inconvenience to exporters particularly in case of under or over-shipment.

The CBR has allowed the SBP and any other authorized bank to detect the EDS from the remittances against export proceeds.

The EDS would be deducted from exporters according to the rules and procedures laid down by the SBP.

Currently, the same facility was available to exporters in the case of export income tax. A notification in this regard may be issued within one or two days, the official said.

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