The Ministry of Revenue has issued a clarification on the excise tax applicable to tailoring services, stating that tailoring factories cannot claim exemption on the grounds of being "service providers." Previously, the Ministry of Finance had noted that manufacturers were not required to pay excise tax for offering tailoring services to customers. However, this interpretation has led to notable revenue losses. Under the new guidance, garment factories holding investment and trade licenses must register for excise tax purposes. Textile and sewn clothing products classified under HS Codes 50.07 to 63.04 remain fully subject to excise tax. The Ministry emphasized that factories cannot use the provision of garment services as a basis for tax exemption. Authorities have urged manufacturing firms and relevant departments to enforce proper monitoring to ensure compliance. Issued by the Minister of Revenue, the clarification seeks to safeguard tax collection within the sector and provide clear procedures going forward.

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