Government Extends DLTL Scheme for Rice Exporters

The Federal Government has approved a 90-day extension of the Drawback of Local Taxes and Levies (DLTL) scheme for rice exporters while enhancing the incentive rate applicable to non-basmati rice exports from 3% to 5%, according to media reports.

The decision was taken during a meeting of the Export Development Fund (EDF) Committee, following representations made by the Rice Exporters Association of Pakistan (REAP) seeking continuation and enhancement of export incentives for the rice sector.

During the meeting, REAP urged the government to extend the DLTL scheme for an additional 90 days to ensure uninterrupted support for exporters operating in international markets. The proposal was presented on behalf of the industry by former REAP Chairman and President of the Pakistan-Kenya Business Council, Rafique Suleman.

The Association also requested that the DLTL incentive for non-basmati rice be increased from 3% to 9%, aligning it with the incentive currently available for basmati rice exports.

According to industry representatives, equalising the incentive structure would strengthen the international competitiveness of Pakistani rice, improve exporters’ pricing flexibility, and support growth in overseas markets amid increasing global competition.

Following consideration of the proposals, the government decided to maintain the existing 9% DLTL incentive for basmati rice while approving an increase in the incentive for non-basmati rice from 3% to 5%.

The extension of the DLTL scheme and the enhancement of incentives for non-basmati rice are expected to provide additional fiscal support to exporters, improve export competitiveness, and contribute to Pakistan’s efforts to expand its presence in international rice markets.