LAHORE, June 25: In an unusual move, the Central Board of Revenue (CBR) has allowed duty-free and sales tax free import/local sale and purchase of a dye, Maxilon, to, what sources allege, favour a Karachi-based polyester staple fibre (PSF) producer, which is also the largest consumer of this brand.

Sources told Dawn on Saturday that other brands of the same dye (PCT head 3204.1300) were still subject to 15 per cent sales tax and as much customs duty.

The sources described the CBR move as unusual, saying such exemption were always given to a particular product and not to any brand. They said it will discourage the import of other brands, creating a monopoly of Maxilon in the Pakistani market.

The CBR has given the exemption in the SRO (621(1)2005) (table-I, Sr No:6) issued subsequent to SRO (536(1)(2005), which removes sales tax on the import of items used for textile exports.

The exemption is said to have been given in line with the federal government’s decision to make the entire export-oriented textiles chain zero-rated.