ISLAMABAD: The Federal Board of Revenue (FBR) has revised the Export Facilitation Scheme (EFS), allowing exporters to avail zero duty and import-stage taxes for 18 months while requiring six-monthly reconciliation statements.
Minister of State for Finance Bilal Azhar Kiani said the government extended the utilisation period under EFS from nine months to 18 months, providing exporters, particularly SMEs, more flexibility and cost savings.
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The amendment permits an additional six-month extension beyond 18 months on a case-by-case basis, subject to approval by a committee, ensuring exporters can plan imports and production cycles without fiscal penalties.
FBR stated that the six-monthly reconciliation statement aims to safeguard the EFS from misuse, preventing any fraudulent claims and ensuring the incentive mechanism effectively promotes exports and strengthens Pakistan’s trade sector.
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The official notification cited powers under the Customs Act 1969, Sales Tax Act 1990, Federal Excise Act 2005, and Income Tax Ordinance 2001, highlighting the legal framework supporting the revised export facilitation rules.
Industry experts expect the revised EFS to improve liquidity for exporters, reduce operational costs, and encourage compliance while strengthening Pakistan’s export competitiveness in international markets.