ISLAMABAD: The government has increased the prices of 350 basic food items and other essential goods by surging one per cent additional Customs duty from 20 to 21 per cent to generate Rs40 billion under the International Monetary Fund (IMF)’s conditions to achieve Rs3,104 billion tax collection target.
The imposition of one percent hike in Customs duty (CD) on all imported products except exempted items will alone yield additional revenues to the tune of Rs21 billion from December to June.
Federal Finance Minister Ishaq Dar announced this measure, approved by the Economic Coordination Committee (ECC), in a press conference along with FBR Chairman Nisar Mohammad Khan.
Dar said the FBR estimated to collect Rs4.5 billion through imposition of Regulatory duty (RD) on new 61 imported items in the range of 5 to 10 percent, enhancing RD on 289 imported items by 5 percent to collect Rs4.5 billion, raising rates of Federal Excise Duty on cigarettes in the range of Rs125 and Rs100 on high tier and low tier to generate Rs6.5 billion, additional one percent Customs duty across the board except the exempted items to raise Rs21 billion and imported used and old cars to generate Rs2.5 billion.
On import of old and used cars, the minister said that the fixed duty rate for old and used cars would remain unchanged for 800cc and 1,000cc cars with existing rate of $4,800 and $5,000 respectively.
On cigarettes, the Federal Excise Duty was increased on higher tier brands from Rs3,031 per 1,000 cigarettes to Rs3,155 per thousand, while on lower tier brands the FED rate was increased from Rs1,320 to Rs1,420.
The FBR has imposed 5 to 10 percent RD on new 61 imported items on which the CD was already imposed. The government slapped 10 percent RD on live poultry; fish fillets and other fish meat; coconuts, Brazil nuts and cashew nuts, fresh or dried; almonds; prepared or preserved meat, meat offal or blood; cocoa paste; cocoa butter, fat and oil; cocoa powder, not containing added sugar; ground-nuts, other mixtures; pineapples; citrus fruit; pears; apricots; cherries; peaches, including nectarines; strawberries; palm hearts; essences and concentrates, of coffee, tea or mate and preparations; trunks, suit-cases, vanity-cases, executive-cases, briefcases etc; apparel and clothing accessories of leather; waterproof footwear; other footwear with outer soles and uppers of rubber or plastics; footwear with outer soles of rubber, plastics leather or composition leather and uppers of leather; footwear with outer soles of rubber, plastics, leather; other footwear; parts of footwear; glass beads, imitation pearls, imitation precious or semi-precious stones; imitation jewellery; wrist-watches, pocket watches and other watches; video games; articles and equipment for general physical exercise, gymnastics, athletics; brooms, brushes; diapers for infants and babies.
Five percent RD has been imposed on sanitary towels and tampons; men’s or boys overcoats, car-coats, capes, cloaks; women’s or girls overcoats, car-coats, capes, cloaks; men’s or boy’s suits, ensembles, jackets; women’s or girls, suits ensembles, jacket, blazers, dresses, skirts, divided skirts, trousers etc; men’s or boys shirts; women’s or girl’s blouses, shirts and shirt-blouses; men’s or boys, singlets and other vests, underpants, briefs, nightshirts, pyjamas; women’s or girls singlets and other vests, slips, petticoats, brief, panties, nightdresses, pyjamas; babies garments and clothing accessories; garments, made up of fabrics; track suits, ski suits and swimwear; brassieres, girdles, corsets, braces, suspenders, garters and similar articles; handkerchiefs; shawls, scarves, mufflers, mantillas, veils and the like; ties, bow ties and cravats; other made-up clothing accessories; bed linen, table linen, toilet linen and kitchen linen; curtains and interior blinds; other furnishing articles; sacks and bags; tarpaulins, awnings and sunblinds, tents; other made-up articles, including dress patterns; sets consisting of woven fabric and yarn; and used or new rags, scrap, twine, cordage, rope.
The FBR has increased the RD on 289 imported items by five percent from existing rate of 10 percent to 15 percent. The FBR increased RD on Yogurt from 10 percent to 15 percent, others, butter, dairy spreads, cheese, curd, grated or powdered cheese, processed cheese, blue veined cheese, natural honey, figs, pineapples, avocados, guavas, mangoes, frozen mangoes, mangoesteens, mango pulp, oranges, kinos, grapefruit including pomelos, lemon (citrus lemon), watermelons, papaws, apples, pears, quinces, apricot, sour cherries, peaches, plump and sloes, strawberries, raspberries, kiwifruit, durians, pine nuts, chewing gum, and white chocolate, containing eggs.