The Federal Board of Revenue (FBR) has abolished 3 percent customs duty and 2 percent additional customs duty on the import of cotton from February 1, 2019 till June 30, 2019. The FBR has issued SRO 107(I)/2019 and SRO 108(1)/2019 in this regard here on Monday. The FBR has already notified zero percent sales tax on the import of cotton from February 1, 2019 till June 30, 2019.

The Economic Coordination Committee (ECC) of the Cabinet had approved withdrawal of customs duty, additional customs duty and sales tax on import of cotton. On a proposal of Textile Division, the ECC approved withdrawal of 3% customs duty, 2% additional customs duty and 5% sales tax on import of cotton to bridge the demand and supply gap and help the textile industry, especially the export segment.

Following is the text of the SRO 107(I)/2019 issued here on Monday.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), the federal government is pleased to exempt the whole of customs duty leviable under the First Schedule to the said Act on import of goods specified in column (2) of the Table below falling under PCT headings specified in column (3) of the said Table, namely:-

Following is the text of the SRO 108(I)/2019 issued here Monday:- In exercise of the powers conferred by sub-section (5) of section 18 of the Customs Act,1969 (IV of 1969), the federal government is pleased to direct that the following further amendment shall be made in its notification no. SRO 630(1)/2018, dated the 24th May, 2018, namely:-

In the aforesaid notification, in clause (iii), after the expression PCT codes, the expression "52.01, 52.03" shall be inserted. 2. This notification shall take effect on and from the first day of February, 2019 till the 30th June, 2019.

===============================================

S. No.  Description                    PCT Code

===============================================

(1)     (2)                                 (3)

===============================================

1       Cotton, not carded or combed      52.01

2       Cotton, carded or combed          52.03

===============================================

Copyright Business Recorder, 2019