ISLAMABAD (August 25 2004): The Central Board of Revenue (CBR) has decided to enhance duty drawback rates on the export of polyester staple fiber (PSF) based textile products including blended garments, wearing apparel/made-ups, polyester-viscose staple fiber blended yarn and 100 percent polyester staple fibre yarn from July 1, 2004.
The CBR will replace schedule-II, schedule-VI and schedule-XXXVI of the standard SRO 412(I)/2001 through a SRO to be issued shortly.
It has been decided that the duty draw back rates will continue to be calculated on the basis of deemed import of polyester staple fibre (PSF).
In this connection, the prevailing international prices of PSF during the preceding six months will be taken into consideration for the calculation of duty drawback.
The tax authorities made drastic reduction in the duty drawback rates on certain textile products through SRO 605(I)/2004 issued before the announcement of Trade Policy.
The enhanced duty drawback rates on PSF-based textile products were applicable up to June 30, 2004, and through a notification, the rates were brought at par with the existing duty structure.