ISLAMABAD, July 30 -- The Federal Board of Revenue (FBR) has officially imposed an 18% sales tax on imported raw cotton, yarn, and grey cloth. The tax, long demanded by the All Pakistan Textile Mills Association (APTMA), comes nearly a month after its inclusion in the federal budget for 2025-26.

The delay in issuing SRO 1359(I)/2025 created major concerns among domestic producers and traders. Although the measure was approved by the cabinet weeks earlier, it wasn't formally notified until Tuesday. This gap caused uncertainty in cotton buying, affecting both ginners and mills at the start of the new crop season.

The SRO removes these imports from the Export Facilitation Scheme but exempts consignments shipped within 10 days before the no...