ANNOUNCEMENT 08 Sep 2015

In September 2015, the government of Pakistan announced a change in the tax legislation for exporters.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 08 Sep 2015 | Removal date: 19 May 2020

Tax-based export incentive

On 8 September 2015, the Federal Board of Revenue of Pakistan through SRO 923(I)/2015 increased the rates of duty drawback on the manufacture and export of certain finished products. The duty drawback is provided to reimburse the customs duties paid on the imports of raw materials used in the manufacture of these goods. The finished goods include -

  • Finished leather of goat or sheep or kangaroo skin - 0.80% to 1.06% of FOB value
  • cow or buffalo or camel hide - 1.17% to 2.38% of FOB value
  • Cow or buffalo hide in finished form for furniture or upholstery leather - 2.12% to 2.43% of FOB value

The drawback rates have been increased further on 20 May 2020 (see related State Act).

AFFECTED SECTORS