LAHORE: The Federal Board of Revenue (FBR) on Tuesday issued the much-delayed Statutory Regulatory Order (SRO) imposing an 18 per cent sales tax on the import of cotton fibre, yarn, and grey cloth, following sustained pressure from the All Pakistan Textile Mills Association (Aptma).

The tax measure, which aligns with commitments made in the federal budget for 2025-26, comes nearly a month after the budget announcement and over three weeks after formal cabinet approval. The delay, industry stakeholders say, has created uncertainty in the market and hurt domestic cotton producers.

The SRO 1359(I)/2025 stipulates that “[r]aw cotton, cotton yarn........

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