The Central Board of Revenue (CBR) has made drastic reduction in duty drawback rate on the export of several hundred plastic products from July 15, 2004.
The duty drawback has been reduced from Rs 8.50 per kilogram to Rs 4.91 per kilogram on the export of 100 percent plastic goods including packing material used in the goods meant for exports such as bottles, jars, vials, containers and droppers etc.
The CBR has replaced Schedule XII of the standard SRO.412(I)/2004 through an SRO(I)/2004 here on Monday.
Sources said that the government has reduced custom duty on the import of raw materials, which covers a broad spectrum of industries and agriculture inputs. The key sectors include iron and steel, plastics, precision equipment, locally manufactured plant and machinery, chemicals and dyestuff and miscellaneous items.
Following duty reduction in budget, the CBR has started reducing duty drawback rates on the export of products manufactured from the raw materials/inputs on which duties were slashed. Input Output Coefficient Organisation (IOCO), Karachi has started reviewing rates in this regard.
The raw materials used in the manufacture of plastic products include plastic moulding compound, polyethylene high density, polyethylene low density, polypropylene, polyvinyl chloride resin, polyvinyl acetate and other inputs.