ERF rate cut by one percent: 10 percent RD imposed on import of yarn, fabrics

Finance Minister Ishaq Dar Saturday announced imposition of a 10 percent regulatory duty on the import of yarn, grey fabrics and processed fabrics effective from November 1, 2015. The Finance Minister held a series of meetings with representatives of APTMA and value added sectors. After in-depth deliberations, several decisions were taken to facilitate textile sector.
On the conclusion of the meeting with All Pakistan Textile Mills Association (APTMA), Ishaq Dar told media at the FBR House that successful negotiations have been held between APTMA and the Ministry of Finance. According to him, decisions have been taken to facilitate local manufacturers and supply chain of the textile sector. It has been decided that regulatory duty @ 10 percent shall be levied on the import of cotton yarn and grey & processed fabric with effect from 1st November, 2015. Secondly, Export Re-financing Facility (ERF) rate shall be reduced by 1 percent (100 basis points). Thirdly, ginning and spinning sectors shall qualify for Long Term Finance Facility (LTFF). Fourthly, the rate of LTFF shall be reduced by 100 basis points. Fifthly, to resolve the issue of pending sales tax refunds, committees consisting of representatives from industry and the FBR shall be constituted in each Regional Tax Office (RTO). Sixthly, the FBR efforts shall be enhanced for prevention of smuggling. On the occasion, representatives of the textile industry thanked the Finance Minister for the steps announced and assured they would extend support to the government in its efforts for promotion of tax culture and enhancement. When asked about the value added sector demands, Dar responded that they can also avail benefits from the Duty and Tax Remission for Export Scheme (DTRE) and they will not be affected from the said regulatory duty.