The All Pakistan Textile Mills Association (APTMA) has formally challenged the systemic collection of the “Punjab Infrastructure Development Cess” on duty-free export inputs, demanding immediate intervention from the Pakistan Single Window (PSW).
Following an October 1 announcement regarding the digital collection of the provincial levy, APTMA notified the PSW that Goods Declarations filed under the “Export Facilitation Scheme” are legally exempt. The association asserts that Punjab-based exporters clearing consignments at Karachi ports are being incorrectly subjected to the levy.
The association’s legal defense relies on specific statutory exemptions:
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Under Section 6 of the Punjab Infrastructure Development Cess Act, 2015, goods explicitly exempted by the Federal Government from import duties and taxes are completely exempt from the provincial cess.
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Rule 880(1) of the Export Facilitation Scheme, 2021—notified via SRO 957(I)/2021—entitles authorized users to acquire input goods free of customs duty, federal excise duty, sales tax, and withholding tax.
“Accordingly, EFS Goods Declarations filed at Karachi ports by Punjab-based exporters should also be treated as exempt from Punjab Infrastructure Development Cess.”
To resolve the discrepancy, APTMA Secretary General Mohammad Raza Baqir formally requested the PSW to review its system configuration in consultation with the Punjab Revenue Authority and the Federal Board of Revenue. The textile body has also urged authorities to issue a public clarification to guide traders and customs agents navigating the digital framework.