KARACHI: The Federal government has decided to eliminate zero rating on supplies to the export sectors, and the import of raw material, components, sub-components by export oriented sectors would be subject to 10 percent Customs duty.
These export oriented sectors that are enjoying zero percent customs duty on imports include sugar mills, cement plants, industrial chemicals, thermal power plants, hydel power plants, fertilizer plants, surgical goods, steel pipes/tubes industry, engineering goods, textile etc.
The Federal government has eliminated duty and tax exemptions on the import of raw material for manufacturing of over 130 products as was envisaged in SRO 565(I)/2006. This development would result in additional revenue collection of over a billion rupees.
According to details reaching Customnews.pk, SRO 565(I)/2006 had accorded exemptions on the import of raw material for manufacturing of 157 products, but now the government has decided to limit these concessions to the manufacturing of 26 products only.
Sources said that an official notification in this regard would follow soon.
It was learnt that duty/tax concessions on the import of raw material, components, sub-components, assemblies and sub-assemblies for electronics appliances such as air conditioners, washing machines and refrigerators etc have been withdrawn.
Raw materials for the manufacturing of audio/video cassettes, boilers, bearings, bolts, nuts, screws, concrete nails, blind rivets, cables and conductors, centrifugal and turbine pumps, ceramics, circuit breakers, CNG dispensers, CNG Kits, CKD kits for computer monitors and machinery and equipment for the use of defense forces would be subject to statutory rate of duty of 20 percent.
Raw materials, components and sub-components etc for the manufacturing of footwear, medical equipments while assemblies and sub-assemblies for oil refining, petro-chemical industry, chemical industry and PVC industry would also be subject to statutory rate of duty.
Exemptions and concessions as envisaged under SRO 565(I)/2006 to several sectors are going to be withdrawn completely or reduced significantly, sources said.