APTMA seeks exemption of EFS imports from Punjab infrastructure cess

The All Pakistan Textile Mills Association (APTMA) has requested the Pakistan Single Window (PSW) to exempt goods imported through the Export Facilitation Scheme (EFS) in Punjab from the Infrastructure Development Cess. The association argues that these imports are already exempt from duties and taxes under existing rules.

APTMA pointed out that goods declarations filed under the EFS are exempt from the Punjab Infrastructure Development Cess when cleared through Lahore Dry Port or Lahore Airport. They cited Section 6 of the Punjab Infrastructure Development Cess Act, 2015, which states that goods exempted by the Federal Government from payment of duties and taxes for import will also be exempt from the cess.

The association also referred to Rule 880(1) of the Export Facilitation Scheme, 2021, which allows eligible input goods to be imported without paying customs duty, federal excise duty, sales tax, or withholding tax, provided the users have the necessary authorization.

APTMA emphasized that the EFS enables eligible input goods to be imported duty-free and tax-free against a Goods Declaration containing the relevant authorization number. Consequently, they argued that EFS Goods Declarations filed at Karachi ports by Punjab-based exporters should also be considered exempt from the Infrastructure Development Cess.

In their letter addressed to PSW CEO Syed Aftab Haider, APTMA requested a review of the system configuration in consultation with the Punjab Revenue Authority and the Federal Board of Revenue. They also urged PSW to issue a clarification to guide exporters, importers, and customs agents.