ANNOUNCEMENT 20 May 2020

Pakistan has increased the duty drawback rates on certain finished leather goods.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 20 May 2020 | Removal date: open ended

Tax-based export incentive

On 20 May 2020, the Federal Board of Revenue of Pakistan through SRO 460(I)/2020 increased the rates of duty drawback on the manufacture and export of certain finished leather 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 - drawback rate increased from 1.06% to 1.78% of FOB value
  • Finished leather of cow or buffalo or camel hide or side - drawback rate increased from 2.38% to 3.73% of FOB value

The increased rates are effective 20 May 2020 onwards. The rates were last increased on 8 September 2015 (See related State Act).

 

AFFECTED SECTORS