The government is likely to extend the Duties and Tax Remission for Export Scheme (DTRE) facility for ghee manufacturers-cum-exporters in Hattar in Khyber-pakhtunkhwa and Hub in Balochistan in a move to give greater support to the industry and increase the commodity’s export.
Sources told Business Recorder on Wednesday that the government was seriously considering inclusion of Hattar and Hub areas for export of ghee under DTRE. In this regard, the Federal Board of Revenue (FBR) in consultation with the Commerce Ministry moved a summary to the Ministry of Finance for approval.
The industry proposed that these units should be allowed to export vegetable ghee to Iran, Gulf states and Central Asian countries. It was also proposed to extend application of DTRE scheme across the country covering areas of KPK and Balochistan, including Hattar and Hub areas. Sources said that there was no ban on export of vegetable ghee to Iran, Gulf States and Central Asian countries.
A summary for the Economic Co-ordination Committee (ECC) of the Cabinet was also prepared and sent to the Finance Minister for approval regarding the inclusion of these areas for export of ghee under the DTRE scheme. This would require amendments in the DTRE scheme through proper approvals of competent authorities. Historically, Afghanistan has been a promising market for Pakistan to export ghee and cooking oil.
Since Hattar in Khyber Pukhtunkhawa and Hub in Balochistan have a strategic advantage, being close to Afghan boarder, manufacturers-cum-exporters selected had these areas for setting up their ghee manufacturing units and take benefit of location for export of ghee to Afghanistan. In December 2010, the FBR restored DTRE scheme for ghee manufacturers-cum-exporters in Khyber-Pakhtunkhwa and Balochistan, but excluded Hattar and Hub from this facility, putting industrial units in these areas at a disadvantage against the industry in the rest of the country.
An FBR notification, dated December 13 last year, said: “DTRE facility shall be allowed to the ghee manufacturers-cum-exporters of only those units which are located in Khyber Pukhtunkhawa and Balochistan excluding the areas of Hattar and Hub”. The notification said the DTRE facility shall be subject to provision of average exports made by the manufacturers-cum-exporters of ghee during the last four years plus enhancement of 20 percent.
It further said that DTRE shall be available to the exporters on industrial track record and performance basis. The time limit shall be 90 days for utilising the imported palm oil and this period shall be counted from the date of import general manifest (IGM) to export date of consignment. Sheikh Abdul Waheed, Chairman of Pakistan Vanaspati Manufacturers Association (PVMA), appreciated the move and said that if the government wanted to extend the DTRE facility to Hattar and Hub, it would considerably boost exports.