ISLAMABAD ( MEDIA REPORTS )
Government of Pakistan through Federal Budget 2016-17 has announced several relief measures for local industry along with various revenue measures and tariff rationalization.
Customs duty of 11 percent and 16 percent is exempted and instead RD at uniform rate of 9.0 percent is levied on the telecom equipment.
The relief measures include reduction of duty from 11 percent to 3.0 percent and removal of 5.0 percent regulatory duty (RD) on grandparent and parent stock of chicken; reduction of duty on import of hatching eggs from 11 percent to 3.0 percent; reduction of RD on aluminium waste or scrap from 10 percent to 5.0 percent; exemption of 3.0 percent customs duty (CD) on raw skins & hides; exemption of 16 percent CD on stamping foils; reduction of CD on sheets for veneering rom 16 percent to 11 percent; reduction of CD on pre-fabricated modular clean rooms panels from 20 percent to 3.0 percent; exemption of 3.0 percent CD on import of ostriches and reduction of CD on fabric (non-woven) for pharmaceutical industry from 16 percent to 5.0 percent.
In order to protect local industry 5.0 percent RD is levied on import of synthetic filament yarn of polyesters.
Customs Duty is increased on aluminium beverage cans from 11percent to 20percent while CD is reduced on uncoated polyester film and aluminum wire from 20percent to 11percent for manufacturers of metalized yarn.
Moreover CD is reduced from 20 percent to 16 percent and from 16 percent to 11 percent, on raw materials for manufacturers of baby diapers.
As tariff rationalization measures, CD rate on bituminous coal and other coal equalized at 5.0 percent. However, for the power projects in IPPs Mode, CD on import of both types of coal is reduced to 3.0 percent.
A separate PCT code for compressors of vehicle at 35percent customs duty has been created while a separate PCT code for classification of electric cigarettes is created at 20 percent CD. Regulatory Duty (RD) of 10 percent is levied on animal protein meals.
As part of revenue measures regulatory duty (RD) is levied and/or increased on 565 non-essential items by various rates ranging from 5.0 percent to 15 percent.
Regulatory duty on betel nuts is increased from 10 percent to 25 percent while RD of Rs.200/kg is levied on betel leaves.
Moreover, concession in duty/taxes on Hybrid Electric Vehicles above 2500cc has been withdrawn.