Pakistan textile mills seek exemption from Punjab infrastructure cess on imports under EFS

The All Pakistan Textile Mills Association (Aptma) has asked the Pakistan Single Window (PSW) to waive the Punjab Infrastructure Development Cess on Export Facilitation Scheme (EFS) declarations lodged at Karachi ports, Profit by Pakistan Today reported. The request concerns Punjab-based exporters whose consignments are cleared in Karachi. Aptma's secretary general, Mohammad Raza Baqir, noted that EFS shipments cleared at Lahore Dry Port or Lahore Airport already enjoy that relief, and asked for it to extend to qualifying Karachi filings.

Aptma's argument rests on the cess statute, which removes the levy for goods that the central government has freed from import duties and taxes. It cites Rule 880(1) of the Export Facilitation Scheme, 2021, under which authorised users may obtain eligible inputs free from customs duty, excise, sales tax and withholding tax, subject to conditions. Since qualifying EFS imports are federally exempt, the association contends the cess should not become payable only because a declaration is lodged at a Karachi port.

Aptma has asked the PSW to review its system configuration with the Punjab Revenue Authority (PRA) and the FBR, so that the cess is not charged automatically on eligible Karachi declarations. It also seeks an official clarification so that every party, from exporters to customs agents, applies the rule uniformly. The appeal follows the PSW's October 1 announcement on collecting the cess through its platform.