The Federal Board of Revenue is set to implement “significant changes” to the Export Facilitation Scheme (EFS) 2021 aimed at addressing revenue leakages and revoking the EFS benefits for importers of iron and steel scrap, Business Recorder reported.

The news outlet while citing sources said the FBR plans to issue a notification following the completion of legal requirements and the cabinet’s approval.

The Economic Coordination Committee greenlit a summary proposed by the Revenue Division to introduce essential policy changes in the EFS 2021. Such updates are intended to minimise revenue losses while ensuring that compliant exporters are not adversely affected.

Proposed modifications to the EFS focus on several key areas to improve efficiency and compliance. Such changes include a reduction in the input utilisation period, input authorisation linked to production capacity and input-output ratios, and the substitution of insurance guarantees with bank guarantees. The revisions would implement vendor facilitation controls, allow for sample withdrawals to verify the use of imported inputs in exported products, and revoke the EFS benefits for importers of iron and steel scrap.

They added that the board has planned to release the draft Statutory Regulatory Order after receiving approval from the cabinet in its upcoming meeting.