KARACHI: The Federal Budget 2018-19 announced by Advisor to PM on Finance Miftah Ismail proposes to increase the statutory rate of Additional Customs Duty to 2.0 percent from existing 1.0 percent.

Ismail said in order to meet the revenue targets for FY 2018-19, revenue measures will be required to be taken so as to maintain the overall fiscal deficit within the predicted limit. “Rather than effecting any large scale changes in the existing tariff slabs to meet this objective, a more restrictive and narrower revenue intervention is predicated.”

Federal Budget 2018-19 has announced a number of customs duty (CD) relief measures. For promotion of exports, CD on raw material/input (104 PCTs) is withdrawn and reduced on 28 PCTs.
Budget also proposes reduction of CD on multi-ply and aluminum foil from 20 percent to 18 percent for liquid food packaging industry along with reduction of CD on finished rooms (Pre-fabricated structures) from 20 percent to 10 percent for setting up of new hotels/motels.
To support dairy sector, CD is exempted on bovine semen, and duty on preparations for making animal feed reduced from 10 percent to 5.0 percent and import of fans for corporate dairy farmers allowed at concessionary rate of 3.0 percent. It also proposes reduction of CD on growth promoters premix, vitamin premix, Vitamin B12 and Vitamin H2 for poultry sector from 10 percent to 5.0 percent.

To encourage local manufacturing of Optical Fiber Cables, CD on input materials i.e, Optical fiber (20 percent), Cable filing compound (11 percent), Polybutylene (20 percent), Fiber reinforced plastic (20 percent) and Water blocking/ swellable tape (11 percent) reduced to 5 percent besides reduction of RD on Optical Fiber Cables from 20 percent to 10 percent. The federal budget has also announced exemption of 16 percent CD on charging stations for electric vehicles along with reduction of concessionary rate of CD from 10 percent to 5 percent on silicon electrical steel sheets for manufacturing transformers.

It also proposes exemption of 5.0 percent CD on specified LED parts and components for manufacturers of LED lights and removal of 2.0 percent RD on LED bulb & Tubes, Energy Saving Bulbs & Tube to protect local industry. Reduction of CD from 16 percent to 8.0 percent is also proposed on Coils of aluminum alloys used in manufacturing of Aluminum beverage cans.

Miftah Ismail also announced reduction of CD on import of coal, across the board, from 5.0 percent to 3.0 percent along with reduction of CD on import of Fire fighting vehicles from 30 percent to 10 percent.