KARACHI: The Customs Department, in its budget proposals for 2016-17, has asked for imposition of five to 20 percent regulatory duties on several importable goods to control mis-declarations.
The Customs Appraisement (South) said that various statutory rates of import duty, under the free trade agreement (FTA) regime ‘help’ importers get items cleared under the minimum duty slab. It proposed increase in regulatory duty of woven cotton fabric import to 15 percent from existing 10 percent.
There are various rates of import duty on similar goods with only structural formation difference. Generally, the importers declare goods with vague and fake descriptions to claim the minimum duty slab.
The Customs Department advised the FBR to specify same concessionary rate of sales tax on raw materials and goods imported by manufacturers/industrial consumers.
According to a statutory regulatory order (1125(I)/2011), sales tax is charged at three percent on industrial inputs imported by manufacturers of the five export-oriented sectors. In case of commercial importers, value addition tax of three percent is also charged in addition to one percent sales tax at the import stage.
