Duty drawback raised for finished leather, plastic

ISLAMABAD: The Federal Board of Revenue has raised duty drawback rates on exports of finished leather and plastic goods including packing material.

The revised rates, worked out by Input-Output Coefficient Organisation (IOCO) of the Customs, were issued through two different notifications SRO460 and SRO461 and the new one will be available to exporters from May 20. On the plastic goods including packing material, the duty drawback rate was raised to Rs5.42 per kg, from Rs3.14 per kg.

Similarly, the rates of duty drawback were raised for finished leather of different animals.

The rate was revised upward to 1.78pc of the Free on Board (FoB) value from 0.80pc on export of finished leather of goat, sheep or kangaroo skin. For cow, buffalo or camel’s hide, it was increased to 3.73pc of the FoB value, from 1.17pc.ARTICLE CONTINUES AFTER AD

Similarly, the new rate will be 2.43pc of the FoB value against 2.12pc on cow or buffalo hide/side in finished form for furniture or upholstry leather (thickness 2.5-5mm).