Cabinet approves cut in additional duty on edible oil

The Cabinet Tuesday approved reduction in the additional customs duty from seven to two percent on the import of edible oil, reflecting a decrease of 5 percent. According to the Cabinet decision, in order to reduce prices of cooking oil and provide relief to the lower income groups, the government has decided to reduce the said duty up to 2 percent at the import stage. From July 1, 2019, the FBR had increased additional customs duty from 2 to 4 percent on 500 items covered under 16 percent customs tariff slab and raised additional customs duty from 2 to 7 percent on 2,400 tariff lines covered under 20 percent and above customs tariff slab.
The increase in additional customs duty from 2 to 4 percent and from 2 to 7 percent would generate revenue to the tune of Rs 25 billion to Rs 30 billion. The FBR has also created a new customs duty slab of zero percent.