ISLAMABAD: The Federal Board of Revenue (FBR) has proposed new rates of duty on tyers in budget 2016-17.
According to sources, FBR proprosed 15 percent duty on tyers but the existing rate of duty is 5 percent. The FBR suggested that change in duty should be through tariff. The justification of suggestion is that it will reduce the classification disputes. Presently tyres used in truck classified under PCT heading 4011.2010 which attract 15 percent customs duty. The tyres used for buses, trucks and lorries other than above PCT classifiable under 4011.2090 attracts customs duty 5 percent and regulatory duties @10 percent.
There is slight different in specification which normally create disputes. It is proposed that a uniform rate of duty in both the PCT i.e. 15 percent be applied and regulatory duty may be removed.
