ISLAMABAD: Federal Board of Revenue (FBR) has highlighted budget measures taken on Customs duty through which regulator duty on import of 565 items has been increased by various rates ranging from 5 percent to 15 percent.
According to revenue measures taken to generate additional customs duty through budget 2017-18, the FBR highlighted the changes:
Regulatory duty levied/increased on 565 non-essential items by various rates ranging from 5 percent to 15 percent
Customs duty @ Rs. 250 per set converted into RD @ Rs. 250 per set on mobile phones
CD @ 11 percent and 16 percent exempted and instead RD at uniform rate of 9 percent levied on the telecom equipment
RD on betel nuts increased from 10 percent to 25 percent while RD @ Rs.200/kg levied on betel leaves
Concession in duty/taxes on Hybrid Electric Vehicles above 2500 cc withdrawn
RELIEF MEASURES:
Reduction of duty from 11 percent to 3 percent and removal of 5 percent RD on grandparent and parent stock of chicken
Reduction of duty on import of hatching eggs from 11 percent to 3 percent
Reduction of RD on aluminium waste or scrap from 10 percent to 5 percent
Exemption of 3 percent CD on raw skins & hides
Exemption of 16 percent CD on stamping foils
Reduction of CD on sheets for veneering rom 16 percent to 11 percent
Reduction of CD on pre-fabricated modular clean rooms panels from 20 percent to 3 percent
Exemption of 3 percent CD on import of ostriches
Reduction of CD on fabric (non-woven) for pharmaceutical industry from 16 percent to 5 percent
PROTECTION TO LOCAL INDUSTRY
5 percent RD levied on import of synthetic filament yarn (of polyesters)
Increase of CD on aluminium beverage cans from 11 percent to 20 percent
CD reduced on uncoated polyester film and aluminum wire from 20 percent to 11 percent for manufacturers of metalized yarn
CD reduced from 20 percent to 16 percent and from 16 percent to 11 percent, on raw materials for manufacturers of Baby Diapers
TARIFF RATIONALIZATION
CD rate on Bituminous coal and other coal equalized @ 5 percent. However, for the Power Projects in IPPs Mode, CD on import of both types of coal reduced to 3 percent
Separate PCT code for compressors of vehicle @ 35 percent CD created
Separate PCT code for classification of electric cigarettes created at 20 percent CD
RD @ 10 percent levied on animal protein meals
MISCELLANEOUS:
ADOPTION OF WCO HS VERSION 2017,- Pakistan being a signatory to the HS Convention is obliged to adopt the HS 2017, incorporated its nomenclature/New HS Codes in Pakistan Customs Tariff with addition, creation and deletion of local PCT codes and also made relevant changes in the Fifth Schedule and SROs/Notifications where HS Codes have changed.
Exemption from CD extended on import of combined harvestersthreshers up to 5 years old while 10 percent and 20 percent RD levied on five to ten years and more than ten years old respectively.
Additional duty on cylinder head for motorcycles levied
Extension of concession on 11 more components of trailers
Concessionary rate of 11 percent available on Set top boxes, TV broadcast transmitter and Reception apparatus etc. extended till 30.6.2018.
Surcharge in excess of 0.25 percent for cargo in-bonded at Karachi for upcountry Bonds exempted
Expansion of scope of exemption on import/donation by allowing imports and donation of Federal, Provincial, AJ&K, Gilgit-Baltistan Governments, NDMA, PDMA and Govt. emergency/ rescue services
Import of solar panels and related components were exempted from the condition of ‘local manufacturing’ till 30th June 2017 which is extended till 30th June, 2018.
