Duty rebate payment to textile sector increases by over 100pc

Duty rebate payment to textile sector increases by over 100pc

ISLAMABAD: The payment of customs duty rebate to textile sector increased by over 100 percent during tax year 2020, which shows the commitment of Federal Board of Revenue (FBR) to facilitate the most import sector for resolving liquidity issues.

The payment of customs duty rebated was Rs18.31 billion during tax year 2020 as compared with Rs9 billion in the preceding tax year, showing an increase of 103.33 percent.

According to details released by the FBR, the major chunk of the rebate payment to textile sector was issued to ready-made garments and fabric made-ups.

The payment of customs duty rebate to ready-made garment industry was Rs6.5 billion during tax year 2020 as compared with Rs1.88 billion, showing a growth of 246 percent.

Similarly, the payment of duty rebate to fabric and made-up increased to Rs6.41 billion in tax year 2020 as compared with Rs1.12 billion in the preceding tax year, showing a rise of 472 percent.

The FBR has taken all possible measures to provide relief through payment of refunds and rebate to sectors of the economy for resolving liquidity issues during coronavirus pandemic.

The FBR issued rebate to the tune of Rs1.56 billion to hosiery industry during tax year 2020 and Rs1.24 billion to cotton fabric industry.

The FBR issued an amount of Rs24.4 billion as a total duty rebate during tax year 2020 as compared with Rs14 billion in the preceding tax year, showing an increase of 74 percent.