KARACHI: The Finance Bill 2016 proposes to rationalize the Customs tariff besides withdrawing exemptions aimed at eliminating discriminatory tax exemptions and concessions.
Finance Bill proposes to reduce tariff slabs from existing 5 to 4 by merging 2% slab and 5% slab in new 3% slab. 10% and 15% slabs substituted with 11% and 16% slabs respectively.
Government has also announced in the Bill, concessions of customs duty for dairy, livestock & poultry sectors from 5% to 2%; concessions of customs duty for fish farming, fish feed pellet (floating type) machines from 5% to 2%, fish / shrimp feed 10 % and 20% to 0%.
Finance Bill 2016 has also announced exemption from customs duty on import of premixes to prevent growth stunting from 5-20 percent to 0%.
Customs duty of 20 percent is withdrawn on Water Quality Testing Kits, duty is reduced to 5.0 percent from 20 percent on local manufacturing of LED Lights. Duty on import of raw material of PVC resin is reduced to 3.0 percent from existing 5.0 percent, Customs duty is reduced on white spirits from 10% to 3%, on Stamping Foil from 20% to 16%, on Fatty Alcohol Ethoxylates from 15% to 5%, on CFC Free Gases from 15% to 11%, on aluminum sheet in coils from 20% to 11%, on Thermostats of Deep freezers from 20% to 3.0%.
The government through the Finance Bill 2016 proposes to increase customs duty on Almonds from 10% to 20%, on Frozen fish from 10% to 20%, on Medium Density Fiber board from 15% to 20%, on Cement Clinker from 2.0% to 11 percent, on Semi Printed/Printed Security Paper from 5.0% to 16percent, on Live Chicken stock and Eggs of chicken from 5.0% 11%, on Birds eggs (not in shell) from 5.0% to 16%.
Regulatory duty of 10 percent on import of Bead Wire for tyres Manufacturers is withdrawn.
Regulatory duty of 10 percent on import of Carbon Steel Strips used by Razor blade manufacturers is withdrawn while regulatory duty on powdered milk and whey powder is increased.