FPCCI's senior vice president and chairman of its Budget Advisory Council, Syed Mazhar Ali Nasir, has urged the Federal Board of Revenue (FBR) to withdraw duty on import of capital goods because all the capital goods including plant and machinery are ultimately used by the industry.
"This will help reduce cost of import and stimulate growth of industry including expansion of existing industrial capacity and generate employment and export surplus," he said, proposing that there should be no upfront cost on plant and machinery - new or second hand for initial installation of Balancing, Modernization or Replacement (BMR) as its installation results in taxation activity.
He said import of textile machinery is zero rated whereas the Fifth Schedule to the Customs Act, 1969 provides reduced rate of customs duty on import of all other capital goods. He said the competitor nations allowed duty-free import of plant, machinery and other capital goods hence it is also necessary for Pakistani industry to compete the rivals in international market.
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