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Polyester fibre

duty drawback

rates reduced

AFZAL AHMED

KARACHI: The government has reduced the duty drawback rates for Polyester Staple Fibre following reduction in the import duty on the commodity in the 1995-96 federal budget from 20 percent to 10 percent.

According to an SRO issued by the CBR on August 6, the new rates of drawback will become effective from September 30 and till then exporters of 100 percent polyester and blended yarns can claim drawback at the present rates.

The new drawback rates, per kilogramme, announced in the SRO, are Rs.5.77 customs duty and Rs.13.86 sales tax (Rs.19.63), for 100 percent polyester yarn, for 65:35 polyester cotton blended yarn Rs.3.75 customs duty and Rs.9.01 sales tax (Rs.12.76), and for 50:50 polyester cotton blended yarn Rs.2.88 customs duty and Rs.6.93 sales tax (Rs.9.81).

The duty drawback for 30:70 polyester cotton blended yarn has been fixed at Rs.1.73 customs duty and Rs.4.16 sales tax (Rs.5.89), and for 15:85 polyester cotton blended yarn it is Rs.0.86 customs duty and Rs.2.08 sales tax (Rs.2.94).

Sources in the industry told Business Recorder that the downward revision in the drawback rates would not have any significant impact, as the reduction of import duty on polyester staple fibre does not put them in loss.