KARACHI: The Revenue Division has notified to exempt whole of Customs duty leviable under First Schedule of Customs Act, and additional Customs duty on import of cotton, carded or combed, under PCT Code 52.03 and cotton, not carded or combed, under PCT Code 52.01.
Revenue Division issued SRO No.107(I)/2019 and SRO No. 108(I)/2019 notifying the exemptions through amendments in First Schedule of Customs Act and SRO No. 630(I)/2018 with effect from February 01, 2019.
The meeting of Economic Coordination Committee of the Cabinet (ECC) in January with Finance Minister Asad Umar in chair had a detailed discussion on the proposal of Textile Division regarding withdrawal of custom duty, additional custom duty and sales tax on import of cotton.
The step is aimed at facilitating the import of cotton to bridge the demand and supply gap in the country, thereby helping out the textile industry, especially the export segment.
Pakistan’s export have been under-performing for the last few years, even successive rounds of PKR depreciation have failed to boost exports.
Textile sector accounts for more than 50 percent of Pakistan’s total exports, which are getting uncompetitive by day to Vietnam, India, Bangladesh and Turkey due to high cost of production.
Experts have long been suggesting that the country should tap unconventional markets and promote export of unconventional products instead of relying on textile sector only.[the_ad id=”31605″]