ISLAMABAD: The National Assembly Standing Committee on Finance on Saturday approved the second phase of National Tariff Policy (2025-30), while rejecting a proposal to reduce customs duty on the import of scrap and waste from 20 percent to 10 percent.
During a meeting held at the Parliament House, the committee decided to maintain the existing 20 percent customs duty on the import of waste and scrap.
The Secretary Ministry of Commerce informed the committee that some industries import waste materials for use in fuel production. However, members raised concerns over the lack of domestic recycling capacity.
READ ALSO: NTP 2025-30: Tariffs for various sectors to be gradually cut, PM told
Committee member Nafisa Shah questioned why Pakistan, which generates large volumes of waste, is not converting it into fuel domestically. Another member, Arshad Abdullah Vohra, stated that around 25,000 tons of waste are collected daily in Karachi.
The Secretary Commerce stated that Pakistan currently lacks the machinery required for converting waste into fuel, adding that most imported waste is used in furnace-based industrial processes.
Nafisa Shah emphasized that waste and scrap imports should be discouraged and proposed that local waste recycling be included in the tariff policy.
During the briefing, officials informed the committee that customs duty on paper has been reduced from 20 percent to 15 percent.
A 5 percent customs duty has also been imposed on recycled fibre, similar to new fibre, and a separate HS code has been introduced for recycled fibre.
The committee was further informed that customs duty on water reservoir tanks is being abolished, while duty on aluminium is being reduced from 15 percent to 10 percent.
The government has proposed a rationalization of the Fifth Schedule (Exemptions) under customs regulations, aiming to streamline tariff structures and support key sectors.
According to the proposal, 266 entries in the Fifth Schedule that already have the same or lower customs duty rates in the First Schedule are recommended for deletion from the exemption list.
In a move aligned with efforts to promote the construction industry, the customs duty on specialized construction vehicles is proposed to be reduced from 20 percent to 10 percent for construction companies.
Additionally, 97 Active Pharmaceutical Ingredients (APIs) have been added to facilitate local manufacturing of critical cancer and other life-saving medicines.
The overall revenue impact of these adjustments is estimated at approximately Rs700 million.
The committee’s recommendations form part of the broader National Tariff Policy framework aimed at restructuring import duties and promoting industrial efficiency.
Copyright Business Recorder, 2026
Comments