The government has adopted new measures to bring about reforms in the National Tariff Commission through enhanced mandate, which aims at providing all possible assistance to the domestic industry. The commission gives ample legal backing to its decisions and no proceeding or decision of the commission will be considered invalid on the basis of a vacancy or flaw in the constitution of the commission. The NTC Ordinance 2015, while repealing National tariff Commission Act, 1990, introduces a revised provision on the constitution of the commission. The commission comprises five members, appointed by the federal government in a prescribed manner and one of the members will be the head of the body. The commission will have the authority and duty to exercise the functions assigned to it and has the authority to acquire, hold and dispose of property in its own name. An enquiry or investigation for tariff and non-tariff protection or assistance to domestic industry will be completed within two months and in no case more than four months after the initiation.There is a need to form an integrated and sustainable economic strategy to address all issues being faced by the domestic industry, particularly the increasing cost of doing business in Pakistan. The tariffs play important role in the growth of business and trade in a country.
According to Abbas Raza, the chairman of the commission, the emerging global trends indicate that the tariff is not the only measure for improving competitiveness but the production of sophisticated goods in compliance with standards of trade is equally important for strengthening industrial competitiveness and the export sector. The National Tariff Commission is carrying out an exercise for the rationalisation of tariff to make Pakistan Customs Tariff an economic tool for source allocationand for the achievement of industrial and other economic development.The chairman of the commission emphasised that fundamental principles of reciprocity and mutual advantages must be noted while negotiating tariff concessions for free trade agreementsin line with the WTO trade regime.
Earlier, a wave had been started in Pakistan to sign agreements with various countries to avoid double taxation. Now the government is trying to abolish double taxation agreements with several countries after finding that the treaties were not in favour of the country. It is a good omen that reforms have been introduced in the tariff commission and it is hoped that better results will be achieved by revising and reforming various tariffs.
