The Federal Board of Revenue (FBR) has officially abolished the Export Development Surcharge (EDS) after 34 years, issuing a formal notification received by the State Bank of Pakistan today.
The move followed instructions from the prime minister in November to increase exports. The FBR’s Customs Wing has forwarded the notification to the SBP, which will prevent banks from deducting the EDS from export proceeds.
The surcharge, previously set at 0.25 per cent of the export value, had generated approximately Rs5 to Rs6 billion annually since 2011. According to Zubair Motiwala, the Export Development Fund currently holds Rs50 billion.
The EDS was first introduced under the Finance Act of 1991 and was later given legal status through the Export Development Fund Act of 1999.
