‘NBR to allow duty-free raw material import’

Staff Reporter :

The National Board of Revenue (NBR) has initiated a move to permit exporters without bond licenses to import raw materials on a duty-free basis.
“We have already begun the process,” NBR Chairman Md Abdur Rahman Khan said at a meeting on Wednesday.

The meeting, titled Meet the Business, was arranged for the first time to gather direct feedback from business representatives regarding field-level challenges. From now on, the meeting will be held on the second Wednesday of every month.

Khan explained that exporters without bond licenses will be able to import raw materials duty-free, provided they obtain a bank guarantee confirming that the materials will only be used for export purposes.

“It must not be sold in the local market or diverted for any other use,” he added.
He informed that the proposed policy has already been forwarded to the Legislative Division for final approval. “Hopefully, it will get clearance by next week,” he said.

Currently, the bond system allows export-oriented companies to import raw materials and accessories duty-free, which are stored in bonded warehouses and used to manufacture export products. If these imported goods are sold domestically, however, applicable import duties must be paid.

The NBR chief further mentioned that bond audits will begin soon. However, he noted that automating the bond system would make risk-based audits much easier. “Our main goal is to ensure that compliant taxpayers are not subjected to unnecessary hassles,” he said. Khan also announced that corporate tax payment will go online starting next year, with the NBR working diligently to make it possible.

Criticizing the country’s long-standing culture of excessive tax exemptions, he said such privileges will no longer be granted unless deemed essential at the policy level. “The authority of the NBR to grant exemptions has been withdrawn – now only parliament can approve them,” he clarified.
He stressed the importance of gradually phasing out the tax exemption culture, adding that taxpayers will be more willing to pay if they see their money being used for priority welfare programs.

The NBR chairman also underlined the need for strict measures against officials who harass taxpayers unnecessarily.

Later, he patiently listened to the concerns of business people and responded to their queries.