The Federal Board of Revenue, under Pakistan’s ministry of commerce, has notified the waiver of whole of customs duties on import of cotton yarn (other than sewing thread) up to June 30, 2021. The exemption is applicable to cotton yarn, irrespective of its cotton weight or it is meant for retail sale or not, the FBR said in is notification SRO 533(I)/2021.
The FBR’s notification follows the April 14 decision of the Economic Coordination Committee (ECC) of Pakistan’s cabinet to withdraw customs duty on the import of cotton yarn.
“The withdrawal of customs duty is meant to ensure smooth supply of cotton and cotton yarn and bridge the gap between domestic production and overall demand for inputs,” the ECC had said in its decision.
Although yarn prices have been declining, textile exporters in Pakistan believe it is still quite high. Cotton production in Pakistan has been falling in recent times.
Post time: May-08-2021