FBR issues SRO to impose 5pc regulatory duty on yarn amid protest

FBR issues SRO to impose 5pc regulatory duty on yarn amid protest

ISLAMABAD: Federal Board of Revenue (FBR) has issued a SRO to impose regulatory duty at 5 per cent on import of polyester yarn despite protest by business community.

The FBR issued SRO 2293(I)/2022 dated December 21, 2022 to impose the regulatory duty on import of polyester yarn at five per cent.

READ MORE: KATI urges removal of regulatory duty on yarn

In order to levy the regulatory duty on polyester yarn, the FBR amended SRO 966(I)/2022 dated June 30, 2022.

The regulatory duty has been imposed on imports made under HS Codes included: 5402.3300, 5402.4600, 5402.4700, 5402.5200 and 5402.6200.

The Economic Coordination Committee of the Cabinet (ECC) in its meeting held November 29, 2022 decided to impose the regulatory duty.

READ MORE: Merchants protest imposition of 5pc regulatory duty on polyester yarn

The decision was taken on the proposal of the ministry of commerce on Individual Tariff Rationalization from different sectors for review of Regulatory Duties (RDs).

Pakistan Yarn Merchants Association (PYMA), while rejecting ECC decision to impose 5 per cent regulatory duty (RD) on polyester filament yarn, stated that it was primary raw material of textile industry.

The association also termed that move as the cause of destruction of 800,000 power looms which were the lifeline of textile industry.

READ MORE: Pakistan slaps 5pc regulatory duty on yarn import

In a statement on Monday KATI President Faraz-Ur-Rehman rejected the government’s imposition of regulatory duty on yarn and thread.

Rehman said that yarn and thread are the raw material of the textile sector, and duty on it is not acceptable in any case. He said that KATI fully supports the stance of yarn traders as the imposition of duty will adversely affect textile exports.

READ MORE: PYMA urges government not to impose regulatory duty on yarn

President KATI said that due to the ongoing economic crisis in the country, shortage of gas and expensive electricity, the cost of production is already at the highest level and due to the financial crisis, most of the textile mills have closed down and are on the verge of closing down more.

Faraz-Ur-Rehman said that the government should reconsider this decision, otherwise millions of people who are involved in the textile sector will become unemployed.