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ISLAMABAD: The Federal Board of Revenue (FBR) has witnessed a major decrease in customs duty exemptions/concessions availed on the import of items under the free trade agreements (FTAs) and preferential trade agreements (PTAs) during 2022-23.

According to the new Tax Expenditure-Report (2024) issued by the Federal Board of Revenue (FBR), the Customs Duty Expenditure is estimated at Rs. 543.521 Billion based on data of FY 2022- 23.

The customs duty concessions are in the form of reduced rate, zero rate, exemptions to specific sectors/items, which are broadly scattered among items such as plant, machinery and equipment, chemicals, parts, renewable energy sources equipment etc.

Regulatory Duty imposed/ raised on wide range of items

The largest portion of customs duty expenditure is given under Fifth Schedule amounting Rs. 190.688 billion, registering a growth of 10.24%, followed by General Concessions, amounting Rs. 146.59 billion.

The report added that the customs duty exemptions under Fifth Schedule, General Concessions and Exports Related Exemptions combined consist of 85.46% of customs duty expenditure. A significant increase is observed in the export related exemptions while major decrease is observed in FTA & PTA, etc.

The customs duty expenditure is 0.65% of the GDP in 2022-23 and contributed 14.58% in the total tax expenditures. 4.3.1. Major Beneficiaries Customs Duty Expenditures

The cumulative sum of custom duty expenditure for top 10 heads, amounts to Rs. 445,122.88 million which is 82% of the total custom duty expenditure. It accounts for 12% of the total tax expenditure incurred during the year 2022-23, the report added.

Copyright Business Recorder, 2024

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Ch K A Nye Jun 18, 2024 10:02am
We need to revisit these FTAs especially those which have resulted in very little additional exports from PK. China being the main one. Imports from there have ballooned to the detriment of PK
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