Shadow

FBR revises negative list for several items in export sectors

FBR revises negative list for several items in export sectorsFBR revises negative list for several items in export sectors

In a significant policy shift, the Federal Board of Revenue (FBR) has revised Sales Tax General Order (STGO) Number 9 of 2023, bringing relief to key export sectors in Pakistan. The amendments involve the removal of several items from the negative list, allowing manufacturers in major export industries such as textile, leather, carpets, surgical, and sports to claim input tax adjustments on various industrial inputs.

Read This: 1,260 Companies to Participate in Texworld Evolution in Paris

Originally, the negative list in STGO 9 comprised 714 items for which input tax adjustment was not permissible for these export-oriented sectors. The latest decision by the FBR reflects a proactive approach to support and enhance the competitiveness of these vital industries.

The updated guidelines now exempt certain items under specific Pakistan Customs Tariff (PCT) headings from the constraints of STGO 9. This means that exporters in sectors like leather and sports, encompassing products such as tents and canvas, can now claim input tax adjustments on essential raw materials like tubes, pipes, and glass fibers crucial to their manufacturing processes.

Previously, input tax adjustment was restricted for manufacturers in these sectors for goods considered unrelated to their business activities, as outlined in the negative list attached to STGO 9. The FBR’s authority to modify annexures or conditions based on field recommendations reflects a commitment to facilitating the growth and competitiveness of these pivotal export industries. This move is poised to have a positive impact on Pakistan’s export landscape, fostering economic development and resilience in these key sectors.

Also Read This: Is Resale Poised to Overtake Fast Fashion?

1 Comment

  • Its like you read my mind! You appear to grasp
    a lot about this, such as you wrote the e-book in it or something.

    I think that you simply could do with a few % to power the message house a bit, but other than that,
    this is great blog. An excellent read. I’ll certainly be
    back.!

Leave a Reply

Your email address will not be published. Required fields are marked *

Discover more from Apparel Architects

Subscribe now to keep reading and get access to the full archive.

Continue reading