The All Pakistan Textile Mills Association (APTMA) has urged the Pakistan Single Window (PSW) to exempt goods imported under the Export Facilitation Scheme (EFS) from Punjab Infrastructure Development Cess, arguing that such imports are already exempt from duties and taxes under the applicable rules.
“APTMA wishes to bring to your attention that goods declarations filed under the EFS are exempt from Punjab Infrastructure Development Cess where consignments are cleared through Lahore Dry Port or Lahore Airport,” APTMA said in its letter to the PSW CEO Syed Aftab Haider.
“In this regard, reference is made to Section 6 of the Punjab Infrastructure Development Cess Act, 2015, which provides that goods exempted by the Federal Government from payment of duties and taxes for import shall be exempt from cess.
It also cited Rule 880(1) of the Export Facilitation Scheme, 2021, notified through SRO 957(1)/2021, under which users can acquire input goods without payment of customs duty, federal excise duty, sales tax or withholding tax in accordance with their authorisation.
APTMA said the EFS allows eligible input goods to be imported free of duties and taxes against a Goods Declaration containing the relevant authorisation number.
“Accordingly, EFS Goods Declarations filed at Karachi ports by Punjab-based exporters should also be treated as exempt from Punjab Infrastructure Development Cess,” it said, as it requested PSW to review the system configuration in consultation with Punjab Revenue Authority and Federal Board of Revenue.
“A clarification may also kindly be issued for the guidance of exporters, importers and customs agents,” it added.
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