ISLAMABAD: Finance Minister Ishaq Dar presented the proposals relating to Customs, which are as follows:
- Exporters Facilitation: At present, six different facilitation schemes are available for export sector. It has been felt that complexity and multiplicity of these schemes creates problems for exporters. Therefore, we have decided to introduce a consolidated Export Facilitation Scheme. The scheme will be implemented after broad-based consultation with exporters.
- Reduction in Maximum Rate of Tariff and Tariff Slabs: High customs tariff rates not only create barriers for trade liberalization, but lead to malpractices at operational level. Our Government has decided to reduce the maximum tariff and number of total slabs. As a first step towards tariff reforms, maximum rate of 30% is being abolished, bringing down the number of slabs to 6 and the highest tariff to 25%. However, luxury items consumed by wealthy segment of society are being subjected to regulatory duty equivalent to the above facility.
- Minimum Import Duty: At present, 40% of imports are totally exempt for customs duty. For addressing the structural flaw in tariff and improving assessment and documentation, 0% slab in tariff is being substituted by 1%. However, socially sensitive items like petroleum products, fertilizers, and all food items etc. are being kept at 0% rate, through inclusion thereof in a new schedule to the Customs Act.
