May 26, 2002	Sunday	Rabi-ul-Awwal 13,1423

ISLAMABAD, May 25: The government is considering to revise the duty drawback rates on export of textile products downward from the next financial year.

Official sources in the Central Board of Revenue(CBR) told Dawn that in consultation with the All Pakistan Textile Manufacturing Association (Aptma), the tax authorities were working out new duty drawback rates mainly on viscose, acrylic, nylons, modals and lycra.

The official said that the decision was taken with a view to rationalising the same in accordance with the latest incidence of import duties and customs and freight values of the input materials.

According to the officials, calculation in respect of around eight items have already been completed.

The amendment in the respective notification will be made following an agreement with all stakeholders, the officials added.

The government had postponed till July 1, 2002 further reduction in the duty drawback rates to facilitate exporters who were faced economic crunch following the US led attack on Afghanistan.

Officials said that deduction in the duty drawback rates, which was due since January 1, 2002 and April 1, 2002 had been held in abeyance.

The cut in duty drawback rates, which would come into force from next financial year would cover items relating to textiles, leather, fabrics, engineering, spare parts and other miscellaneous goods.

Elaborating further, the officials said that the cut in duty drawback will take place in two phases—one from July 1, 2002 and the next cut would be from October 1, 2002, respectively.

The government had reduced the duty drawback rates by 25 per cent during the budget of 2001-02.