Pakistan tax authorities have offered the All Pakistan Textile Mills Association (APTMA) a joint committee to revise about 15 years old duty drawback notification to resolve export-related issues.
Major issues included the assessment of Input Output Ratio (IOR), wastage determination and analysis certificate, etc. The outdated duty drawback notification was issued by the Federal Board of Revenue (FBR) in 2009.
Director General Input Output Coefficient Organization (IOCO), Dr. Mubashir Baig Mirza extended this offer during his visit to the APTMA North Zone office to address a workshop. The offer has been extended to overcome the shortage of technical experts in the FBR. APTMA will nominate process-wise experts of all the value-added stages for the correct determination of wastage.
He has agreed with the APTMA demand for upward revising of duty drawback rates, based on tariff structure, currency exchange rates, and values of textile processes. Both sides will start data collection from the spinning and weaving sectors, followed by the value-added sectors to determine new standards and benchmarks of wastage and IOR, etc.
The textile industry believes that the FBR fails to reflect around 1.
5% of invisible wastages and 1% of moisture wastages in analysis certificates, occurring at various stages of processing in the textile industry.
