Leather manufacturers: FBR trims negative list to allow ST refund
ISLAMABAD: The Federal Board of Revenue (FBR) has removed polyurethane, an integral raw material used in leather goods, from the negative list governing sales tax refunds for manufacturers of five export-oriented sectors. The decision has been taken through Sales Tax General Order (STGO) No. 24 of 2026, amending STGO No. 09 of 2023 dated March 15, 2023. Under the amended order, FBR has excluded…
Islamabad: The Federal Board of Revenue (FBR) has amended its Sales Tax General Order (STGO) No. 09 of 2023, removing polyurethane from the negative list governing sales tax refunds for leather manufacturers. This decision was made through STGO No. 24 of 2026, which came into effect immediately. Polyurethane, a crucial raw material for leather goods, was previously listed under HS Code 3909, serial number 292.
The FBR's move is aimed at providing relief to manufacturers of textile, carpet, leather, surgical, and sports goods, all of which fall under the relevant refund regime. The amendment effectively removes a restriction on polyurethane under the STGO, thereby allowing manufacturers to benefit from the sales tax refund mechanism without the hindrance of the negative list.
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