KARACHI, May 14: The government has reduced duty drawback rates on blended fabrics and made-ups in the range of 20 to 50 per cent of the fob value. The new rates announced in an official notification of Central Board of Revenue on Tuesday are effective from March 1, 2002.

On the other hand, the drawback rates on export of blended grey fabrics which have lesser value addition has been enhanced between 29 to 51 per cent with retrospective effect.

The duty drawback rates for dyed or printed blended fabrics made of staple fibre and cotton fibre has been reduced to Rs10.33 per kilogram, from the previous rates of Rs12.80 per kg, showing a reduction of 19 per cent in the rate.

Similarly, rebate on dyed or printed blended garments, wearing apparel and other made-ups has been reduced to 2.68 per cent of the fob value from the previous rate of 5.03 per cent, indicating a slash of 46 per cent in the rebate.

However, drawback on grey blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 15 per cent polyester staple fibre and 85 per cent cotton to 25 per cent polyester staple fibre and 75 per cent cotton) has been enhanced to Rs2.38 per kg, from Rs1.85 per kg, thereby improving the rebate rate by 29 per cent.

The rebate rate on export of grey blended fabrics made of polyester staple fibre and cotton fibre (applicable to all blends from 50 per cent polyester staple fibre and 50 per cent cotton to 60 per cent polyester staple fibre and 40pc cotton) have been increased from Rs2.74 per kg to Rs4.14 per kg, showing a rise of 51 per cent in drawback rates.

Criticizing the move ahead one month before the budget the chairman, Pakistan Bedwear Exporters’ Association, Shabir Ahmed, said instead of enhancing the duty drawback rates the government has resorted to cut which will hamper the export target.

He said that the worst part of the decision is that it has enhanced the rebate rates on grey fabrics which is of much lesser in value addition than dyed printed fabrics including garments, apparel and other made-ups.