Leather manufacturers: FBR trims negative list to allow ST refund

The Federal Board of Revenue has taken polyurethane off the negative list that restricts sales tax refunds for manufacturers in five export-oriented sectors. The change was made through Sales Tax General Order No. 24 of 2026, an amendment to the order numbered 09 of 2023 issued on March 15, 2023. Business Recorder reported that the item, falling under HS Code 3909 and listed at serial number 292, has been excluded from the list.

The FBR said the raw material is an integral part of inputs used in leather goods, which is why it was dropped from the list. Under the revised order, the item at serial number 292 no longer faces the restriction set out in the earlier order, subject to the remaining conditions of the refund regime. The amendment covers makers of textile, carpet, leather, surgical and sports products, and it takes effect immediately.

For leather goods manufacturers, the revised order lifts the refund restriction on one specified raw material, though other applicable refund conditions still apply. The FBR made the change as a partial modification of the 2023 order, leaving the rest of that framework in place.