To strengthen the local textile industry, Pakistan’s Federal Board of Revenue (FBR) has imposed regulatory duty on the import of various textile items. Notification no SRO 640(I)/2018, released in May this year, has been issued for imposing duty on imported items including textiles falling under the Pakistan Customs Tariff (PCT) code of the first schedule.
In effect from early this month, the FBR has imposed 50 per cent duty on the articles of apparel and clothing accessories, of leather or of composition leather. Footwear with outer soles of leather or composition leather and uppers of textile materials will be charged 40 per cent.
Further, the government has taxed 10 per cent on woven fabrics of cotton containing 85 per cent or more by weight of cotton, mixed mainly or solely with manmade fibres and other woven fabrics of cotton, 8 per cent on woven fabrics of synthetic filament yarn and artificial filament yarn.
Import of cotton yarn (other than sewing thread), woven fabrics of polyesters, artificial staple fibres and synthetic staple fibres is charged 5 per cent. While, 2 per cent regulatory duty is imposed on yarns from synthetic staple fibres, artificial staple fibres and man-made staple fibres.