Revision of incentives helps Pakistan’s textile exports gain traction

The Ministry of Textiles of the Pakistan Government has issued a notification stating that in pursuance of entry 7 of item 39 of Schedule II of the Rules of Business, 1973, the Prime Minister package of incentives for exporters was approved by Economic Coordination Committee (ECC) of the Cabinet.

The textile division has notified that duty drawbacks under this order shall be allowed for exports goods declaration (GDs) filed on or after July 1st, 2017 to 30th June, 2018 at the rate of 7 percent for garments,6 percent for made-ups,5 percent for processed fabrics,4 percent for greige fabric and yarn.

The notification from the ministry confirms the revision of incentives for textile sector exporters under “Prime Minister Exports Enhancement Package”.
50 percent of the rate of drawback of local taxes and levies shall be provided without condition of increment.

Duty drawback of taxes order 2016-17, textile division make the order, namely: “Duty Drawback of Taxes Order 2017-18”.

It extends to the whole of Pakistan including export processing zones and shall come into force at once.

The duty drawbacks under this order shall be allowed for exports GDs filed on or after July 1st, 2017 to 30th June, 2018.

ECC approved the incentives in order to provide duty drawback of taxes collected from garments, home textiles, processed fabric, greige fabric and yarn manufacturing cum-exporter units.

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