ISLAMABAD (February 12 2005): The Central Board of Revenue (CBR) has once again succeeded in blocking the summary of Commerce Ministry regarding payment of duty drawback on polyester filament yarn (PFY) and polyester staple fibre (PSF), submitted to the Economic Co-ordination Committee (ECC) of the Cabinet, it is learnt.
Sources said that the ECC was informed by CBR that the rebate proposed by Commerce Ministry on import PFY and PSF products would only go to ICI Pakistan which manufactures blended fabrics/yarn.
According to sources, the ECC in its meeting on February 8 gave weight to CBR comments over Commerce Ministry. They said that ECC directed CBR to bring up a summary in the next meeting in line with new tariff regime for textile sector and added that consultations should also be made with all stakeholders before finalising recommendations.
Commerce Ministry had recommended that the manufacturers-cum-exporters of PSF-based products have been demanding amendment in standard SRO 412(1) 2001 for compensatory duty drawback to make the textile products more competitive in the international market.