Federal budget proposes Custom duty, regulatory duty reduction on a large number of products and raw material | CustomNews.pk

Federal budget proposes Custom duty, regulatory duty reduction on a large number of products and raw material

KARACHI: Federal Budget 2020-21 has proposed exemption of additional custom duties on those tariff lines which now attract zero customs duty in tariff along with reduction of custom duty on 40 raw materials of various industries. Moreover, tariff rationalization under National Tariff Policy 2019 is proposed by reducing customs duty on 90 tariff lines from 11 percent to 3 and 0 percent. To facilitate industrial sector, government has reduced regulatory duty (RD) from 12.5% and 17.5% to 6% and 11%, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208 and 7225 & 7226, respectively. On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination. Other proposed exemptions proposed vide Federal Budget 2020-21 propose exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate; exemption of custom duty on import of raw material by manufacturer of syringes and saline infusion sets; exemption of customs duties on import of raw material by manufacturers of buttons; reduction in custom duty on import of raw material by manufacturers of interlining/buckram; reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of wire rod; exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations; exemption of custom duties on import of raw material by beverage can manufacturers; reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry. In order to provide relief to common man, PTI government has proposed exemption from customs duties on import of 61 COVID19 related items, which was due to expire on 20th June has been extended due to the continuation of pandemic. Exemption from 2% additional customs duty on import of edible oils and oil seeds under PM’s COVID19 Relief Package has been extended. Government also announced exemption of duties and taxes on import of Dietetic Foods for Children with inherited metabolic disorders; exemption of all duties & taxes on import of Diagnostic Kits for Cancer and Corona Virus; exemption of Customs duties on inputs of Ready to use Supplementary Foods (RUSF); exemption of Customs duties on import of life saving drug Meglumine Antimonite for treatment of leishmaniasis. Government also announced extension up to 2023, in exemption of customs duties on imports for setting up new industries in erstwhile FATA area. Moreover, reduction in regulatory duty on smuggling prone items to bring these items under legal imports has also been proposed. Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business, while providing tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured. PTI government has also proposed enhancing scope of concessions available to Special Economic Zones.
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