ISLAMABAD: The federal government has reportedly imposed an 18 percent sales tax on the import of cotton fiber, yarn, and greige cloth, following a nearly month-long delay and sustained lobbying by the All Pakistan Textile Mills Association (APTMA).
On July 18, 2025, APTMA formally requested Finance Minister Senator Muhammad Aurangzeb to promptly issue a Statutory Regulatory Order (SRO) to implement the tax, in accordance with the commitments made in the Federal Budget 2025–26.
In a letter to the finance minister, APTMA Chairman Kamran Arshad highlighted that the budget had clearly stated these imports would be subject to 18 percent sales tax while continuing to fall under the Export Facilitation Scheme (EFS).
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