ISLAMABAD: The government has reduced the number of customs duty slabs from 8 to 7 and the maximum general tariff slab has been reduced from 35-30 percent in the budget (2012-13). Customs budgetary measures for 2012-13 issued revealed that tariff rationalization has been done with the objective of providing relief to general public; encouraging growth and investment; providing incentives for local industry; reducing cost of doing business and better regulation and enforcement.
The customs duty on raw materials and components for printing and stationery sector has been reduced. The customs duty on 88 pharmaceutical raw materials and other input goods has been further reduced from 10% to 5%. The relief measure would cause revenue loss of Rs 100 million. The duty on self-copy papers and self-adhesive papers has been reduced from 25% and 20% to 10%. This would cause revenue loss of Rs 78 million.
Tariff rationalization further showed that the customs duty on scrap of rubber/shredded tyres has been reduced from 20% to 10% to encourage its use as a substitute fuel for the cement industry. In order to encourage import of hybrid electric vehicles (HEVs) at affordable prices the rate of duty and taxes presently applicable to HEVs and their batteries are being reduced by 25 percent.
The Federal Board of Revenue (FBR) has introduced 12-Digit Subheadings in Customs Tariff to fulfill the requirement of full automation of import processing through the Customs computerized system (WeBOC) and statistical purposes. The WCO has made 5-yearly changes in HS nomenclature for commodity classification and has issued HS-2012 version. Pakistan Customs Tariff classification structure is being aligned with the WCO nomenclature.
The Ministry of Textile Industry has recommended new tariff headings for facilitation of the textile industry and to update national tariff in accordance with international best practices. These headings are accordingly being created in Tariff. In order to encourage import of HEVs at affordable prices the rate of duty and taxes presently applicable to HEVs and their batteries are being reduced by 25%.
In order to simplify the tariff the composite rate of duty on cinematographic film is being change to a simple specific rate of Rs. 5 per meter. The correction of classification and description of some items is being made in the Tariff.
Three major Notifications (SRO 565, 567 and 575) provide exemptions and concessions on import of plant and machinery for setting up of industries and import of raw materials for a large number of domestic industries. These are being cleansed of anomalies and are being simplified.
In order to promote indigenous industry, some industrial raw materials are being included in the concessionary regime.
The FBR has also introduced the punishment of imprisonment for a term not exceeding five years, where rules or conditions of transit are contravened.