Additional Import Duty Cut to Boost Exports In Pakistan
A relief Rs 4 billion has been granted on tax duties of imported raw materials as governments aims to relieve exporters
The federal government has approved another major relief for the industrial sector and decided to cut an additional 2% on import duty in Pakistan for the five largest export sectors.
The government’s decision will apply to 152 different types of tariff lines. There are 2,747 imported raw materials associated with these 152 tariff lines.
Raw materials for textiles, ready-made garments, leather products, sports equipment, and medical equipment will become cheaper.
Among them, raw materials including various chemicals, dyes, buttons, and Bukram will also become more economical.
In light of the government’s decision, the minimum duty rate on 2,747 different imported raw materials will be reduced from 5% to 3%.
The total import bill of these imported raw materials is about 24.2 billion. Thus, tax relief of Rs 3 to 4 billion has been given to the industrial sector.
This decision of the federal government to remove import duty in Pakistan was taken on the basis of the National Tariff Policy of 2019-24 on Customs Duty. This relief of additional duty has been proposed on the recommendation of the National Tariff Commission.
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Abdul Razak Dawood, the Adviser on Trade to the Prime Minister, said in a statement that the government was beginning to see outcomes by reducing customs duties on raw materials.
Economic Coordination Committee (ECC) has abolished additional customs duties on 152 raw material tariff lines.
The reduction in duty on tariffs was done in consultation with the stakeholders.
He said that the abolition of duty would enable the chemical industry to compete in the global market and this measure would increase exports.
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