ISLAMABAD: The Federal Board of Revenue (FBR) levied 3% customs duty on import of books on the proposal of paper industry and not under own free will.
Levy of 3% customs duty on import of books had stirred a new debate related to damaging the local printing sector significantly. The relevant circles had critical towards the imposition of this customs duty. Some declared this act as favourable for local industry while others termed it as harmful for local printing industry.
However, a well placed source at Finance Ministry told Customs Today that Finance Ministry accepted tax proposals move by the FBR and FBR had prepared those recommendations after thorough consultations with concerned industrial sector.
Presently, the source said that import of books is subject to 3% customs duty which was the lowest customs slab as per the Pakistan Customs Tariff 2016-17. The duly was levied in 2014 in a bid to give boost to the local printing industry and to provide fair competition against cheaper imports from abroad.
The source quoted that printing industry representatives in a consultative meeting with FBR officials moved a demand to higher custom duty to 10% on imports of paper. The representatives were of the stance that this way local printing industry would be able to compete with the imported printed material.
The industry representatives emphasized that this anomaly had forced businesses to get their material printed, including text books, outside Pakistan such as in Singapore, Malaysia and China and imported duty free.
“However, no new levies have been specifically imposed on imported books in the Finance Act, 2016-17” the source maintained saying that the Article 1 of the UN Florence Agreement 1950, bound the members states not to apply customs duties or other charges on, or in connection with, the importation of books and publications listed in the Agreement.
“Pakistan is a contracting state since 1951; however, provisions of the Agreement have not been incorporated into national legislation as required under Article XII of the aforesaid Agreement” the source observed saying that Act of Parliament authorized the government to levy Customs duty at the rate of % on the import of books and publications thus creating an anomaly between the domestic laws and international obligations.
