The All Pakistan Textile Mills Association (APTMA) has asked the Pakistan Single Window (PSW) to exempt Export Facilitation Scheme (EFS) goods declarations filed at Karachi ports by Punjab-based exporters from the Punjab Infrastructure Development Cess.
In a letter dated October 5, APTMA said EFS goods are exempt from the Punjab Infrastructure Development Cess when consignments are cleared through Lahore Dry Port or Lahore Airport.
APTMA referred to Section 6 of the Punjab Infrastructure Development Cess Act, 2015, which provides that goods exempted by the federal government from payment of import duties and taxes are also exempt from the cess.
The association also cited Rule 880(1) of the Export Facilitation Scheme, 2021, notified through Federal Government SRO 957(I)/2021. Under the rule, authorized users can acquire input goods without payment of customs duty, federal excise duty, sales tax or withholding tax, subject to the scheme’s authorization.
APTMA said Rule 880(1)(a) further provides that input goods may be imported free of duty and taxes upon filing a Goods Declaration showing the relevant authorization.
According to the association, EFS Goods Declarations filed at Karachi ports by Punjab-based exporters should therefore also be treated as exempt from the Punjab Infrastructure Development Cess.
APTMA has requested PSW to review its system configuration in consultation with the Punjab Revenue Authority and Federal Board of Revenue and ensure that the cess is not charged on EFS Goods Declarations filed at Karachi ports.
The association has also requested that a clarification be issued for exporters, importers and customs agents regarding the exemption.
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