An order prescribing drawback rates for exports of certain products has been announced for the years 2018 to 2021.



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Local Taxes and Levies Drawback (Non-Textile) order, 2018

Inception date: 01 Jul 2018 | Removal date: 30 Jun 2021

Tax-based export incentive

On 8 June 2018, Pakistan's Ministry of Commerce & Textile announced the "Local Taxes and Levies Drawback (Non-Textile) order, 2018". The Order provides a rebate of taxes paid of goods exported from Pakistan, including its Export Processing Zones, between 1 July 2018 to 30 June 2021.

The drawback rates range from 3% to 4% with an additional 2% for exports made to non-traditional markets. These non-traditional markets include 58 countries in Africa, 40 in Latin America, 10 in the Commonwealth of the Independent States, 27 in Oceania, and 8 non-EU European countries.

50% drawback will be provided to the exporter without any condition while the remaining 50% will be provided on the condition of a year-on-year export growth of 10%.

The Order replaces an earlier drawback order announced for the period 2017-18 (see related State Act).