Towel exporters: FBR increases duty drawback rates

Order issued after a period of two years.

KARACHI:

The government has enhanced duty drawback rates for towel exporters with effect from March 31, according to Towel Manufacturers Association (TMA) spokesman Muzammil Husain.

He said TMA had been working for enhancement of duty drawback rates for terry towel for the last two years. Surveys were conducted and data was submitted to the Federal Board of Revenue (FBR) for approval during the period.

Husain said that finally FBR gave its approval vide SRO No 4(KE) 2011 dated March 31, 2011, wherein it enhanced duty drawback rates for cotton polyester blended/bleached towels and cotton polyester towels partly or fully dyed or printed first time.

As per SRO, FBR has allowed 0.71 per cent duty drawback on cotton towels (bleached) fully white instead of 0.44 per cent, 1.88 per cent on cotton towels partly or fully dyed compared to 1.08 per cent earlier, 0.88 per cent on cotton polyester blended/bleached towels and 2.29 per cent on cotton polyester blended fully dyed or printed.

TMA Chairman Syed Usman Ali said that FBR took more than two years to issue this SRO due to which exporters had to suffer. “Had FBR issued the SRO earlier, exporters might have benefited more and fetched more foreign exchange,” he added.

Published in The Express Tribune, April 15^th,  2011.