The present composite tax imposed on (at the Custom point) sale of garments to the local market by export oriented companies [refers to in section 22(1) of the VAT Act] will be increased to Rs. 200 /- per piece.
The same rate will be extended to sale of footwear to the local market by export oriented companies.
The applicable rate for sale of fabric and cut pieces remains the same.
The sale of export quality products to the local market by export oriented BOI companies will be restricted to 5% of the total turnover and will be subjected to the tax at the rate specified above.