In accordance with Finance Minister Miftah Ismail’s announcement to discourage imports, the Federal Board of Revenue (FBR) has notified the application of time-bound regulatory duty (RD) and additional customs charge (ACD) on about 600 to 700 luxury commodities ranging from 100 to 150 percent.
In a news conference last week regarding the removal of the import ban, Miftah stated that following the imposition of RDs, a person can import a car worth Rs60 million for Rs300-400 million, indicating that the government has no current plans to expand imports.
According to The News, the administration was unable to increase RDs and ACDs by 400 to 600%, as the finance minister had previously indicated.
Asim Ahmed, chairman of the Federal Board of Revenue (FBR), stated, “We anticipate a 60-70 percent reduction in imports, which will generate additional revenues of Rs15 billion each year.”
Another FBR official stated that the Tariff Board had studied each tariff line in depth and suggested a maximum RD of between 100 and 100 percent. If the government wishes to increase RDs further, it must seek parliamentary approval.
Vehicles, chocolates, electronics, cosmetics, household appliances, furniture, fruits, vegetables, meat, fish, and footwear all received RDs and ACDs from the FBR.
According to an FBR press release, 7% ACD would be applicable to goods falling under tariff slabs of 30% and higher, as well as slabs of specific rates, with the exception of goods falling under specified PCT codes as well as cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000cc and heavy commercial vehicles in CKD condition exceeding 2,000cc.
The RD would be imposed at a rate of 45% on the import of military weapons, revolvers, and pistols. The RD on the import of other armaments, such as spring, air or gas rifles and pistols, and truncheons, has risen from 25% to 45%.
The RD on the import of other weapons and similar equipment that act by firing an explosive charge has been increased from 20% to 45%.
The board has increased the RD on chocolate imports from 10% to 49%; jams, fruit jellies, marmalades, fruit or nut puree, and fruit or nut pastes created by cooking, whether or not they include added sugar or other sweeteners, from 20% to 49%.
The FBR has also increased the RD on the import of eyeglasses and goggles from 30% to 49%. It also placed a 47% RD import tax on pianos, including automated pianos and string instruments.
