The Federal Board of Revenue (FBR) issued a notification to withdraw a 5% across-the- board General Sales Tax (GST) and reintroduce multiple GST rates of 4-6% on the supply of raw materials and other accessories to un-registered segments of the export-based textile and leather sectors.

Under the scheme, no GST will be paid on the cotton ginning or manmade fiber manufacturing stages. While in the leather sector, the facility will cover the whole GST-registered supply chain including both imports and local supplies, except local retail sales.

The provision of zero-tax will only be available to importers, traders, manufacturers and exporters of textile and leather products registered with the country's sales tax department.

MI Khurram, owner of Comfort Knitwear and a member of the executive committee of the All Pakistan Textile Mills Association (APTMA), said there are still some anomalies in the new scheme that need to be addressed immediately.