The All Pakistan Textile Mills Association (APTMA) has urged the Pakistan Single Window (PSW) to remove the Punjab Infrastructure Development Cess from Export Facilitation Scheme (EFS) goods declarations submitted at Karachi ports by exporters based in Punjab.
In a letter dated October 5, APTMA argued that EFS-related consignments already qualify for exemption from the Punjab Infrastructure Development Cess when they are cleared through Lahore Dry Port or Lahore Airport.
The textile industry has now sought similar treatment for eligible EFS consignments processed through Karachi ports, saying the exemption should apply regardless of the port used for clearance.
APTMA based its request on Section 6 of the Punjab Infrastructure Development Cess Act, 2015. According to the association, the provision allows goods that have been exempted by the federal government from import duties and taxes to also remain exempt from the infrastructure cess.
The association also referred to Rule 880(1) of the Export Facilitation Scheme, 2021, which was notified through Federal Government SRO 957(I)/2021. Under the scheme, authorized users can obtain eligible input goods without paying customs duty, federal excise duty, sales tax or withholding tax, subject to the relevant authorization.
APTMA further pointed to Rule 880(1)(a), under which eligible input goods can be imported without duties and taxes when the Goods Declaration contains the required EFS authorization number.
Based on these provisions, APTMA said EFS Goods Declarations submitted at Karachi ports by Punjab-based exporters should receive the same cess exemption already available to qualifying consignments cleared through Lahore facilities.
The association has therefore asked PSW to review its system configuration so that the Punjab Infrastructure Development Cess is not applied to eligible EFS declarations filed at Karachi ports.
APTMA has also proposed that PSW coordinate with the Punjab Revenue Authority and the Federal Board of Revenue to address the matter and ensure that the system correctly reflects the applicable exemption.
The textile body further requested an official clarification for exporters, importers and customs agents to eliminate uncertainty over the treatment of EFS shipments arriving through Karachi.
The request comes as the textile sector continues to seek measures that can reduce costs and administrative complications for exporters. Since Karachi handles a significant share of Pakistan’s international cargo, the treatment of EFS shipments at its ports is particularly relevant for Punjab-based businesses using the country’s main maritime trade routes.
