ISLAMABAD, June 18: The government has extended the period of compensatory duty drawback facility for one year on locally produced polyester staple fibre (PSF) in the budget of 2002-03.

Central Board of Revenue (CBR) issued a notification extending the period, which was to expire by the end of the current month. The facility would be available up to June 30, 2003.

The government had allowed the compensatory duty drawback on PSF effective from March 2002 at the request of the All Pakistan Textile Manufacturers Association (APTMA).

Although there was no provision under the customs act of giving duty drawback on locally produced items, the government had extended the period for yet another one year, which would result into Rs1 billion loss annually.

The notification reads as: “the CBR is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O. 412(I)/2001, dated the 18th June, 2001, namely: In the aforesaid Notification, in Schedules II and VI, in column (3), for the figures “30.06.2002”, wherever occurring, the figures “30.06.2003” shall be substituted and shall be deemed to have been so substituted on the 13th May, 2002.