By SKM
October 5, 2026
ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has challenged the imposition of Punjab Infrastructure Development Cess on imports made under the Export Facilitation Scheme (EFS), urging authorities to immediately stop charging the levy on eligible consignments filed at Karachi ports.
In a letter to the Pakistan Single Window (PSW), APTMA Secretary General Mohammad Raza Baqir argued that EFS Goods Declarations (GDs) filed by Punjab-based exporters at Karachi ports should enjoy the same cess exemption already available to EFS consignments cleared through Lahore Dry Port and Lahore Airport.
The demand comes days after PSW announced the collection of Punjab Infrastructure Development Cess through its system, prompting the textile industry to seek clarification over the treatment of imports made under the federal government’s export facilitation regime.
APTMA has based its position on Section 6 of the Punjab Infrastructure Development Cess Act, 2015, which stipulates that goods exempted by the federal government from duties and taxes on import are also exempt from the provincial cess.
The association has also invoked Rule 880(1) of the Export Facilitation Scheme, 2021, notified through SRO 957(1)/2021, under which authorized users can import eligible input goods without payment of customs duty, Federal Excise Duty, sales tax and withholding tax, subject to the conditions of the scheme.
APTMA further pointed to Rule 880(1)(a), which permits the import of eligible input goods free of duty and taxes against a Goods Declaration quoting the relevant EFS authorization.
The association’s central argument is that the location where an EFS Goods Declaration is filed should not determine whether the underlying import qualifies for exemption from the Punjab cess.
APTMA has therefore asked PSW to review its system configuration in consultation with the Punjab Revenue Authority (PRA) and the Federal Board of Revenue (FBR) and ensure that the Punjab Infrastructure Development Cess is not charged on eligible EFS GDs filed at Karachi ports.
The association has also sought a formal clarification from the authorities to remove uncertainty among exporters, importers and customs agents and ensure uniform application of the exemption.
The development is particularly relevant for Punjab-based exporters using Karachi’s seaports for the import of inputs under EFS, as any levy imposed on such consignments could increase the cost of inputs imported for export-oriented production.
APTMA’s intervention follows the PSW’s October 1 announcement on the collection of Punjab Infrastructure Development Cess through the single-window platform.
The association has requested PSW to address the matter in coordination with the relevant federal and provincial authorities and issue clear instructions to prevent the collection of cess on consignments it considers eligible for exemption under the EFS framework.Ends
