ISLAMABAD: Federal Board of Revenue (FBR) issued budget salient feature related to Customs duty presented through Finance Bill, 2020.
Industrial Relief Measures
- Exemption of additional custom duties on those tariff lines which are now @ 0 percent customs duty in tariff.
- Reduction of custom duty on 40 raw materials of various industries.
- Tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11 percent to 3 percent and 0 percent.
- Allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house printing facility.
- Reduction in regulatory duty from 12.5 percent and 17.5 percent to 6 percent and 11 percent, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208 and 7225& 7226, respectively.
- On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination.
• Exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate.
• Exemption of custom duty on import of raw material by manufacturer of syringes and saline infusion sets.
• Exemption of customs duties on import of raw material by manufacturers of buttons.
• Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.
• Reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of Wire rod
• Exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations.
• Exemption of custom duties on import of raw material by beverage can manufacturers.
• Reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry.
Relief to Common Man
- Exemption from customs duties on import of 61 COVID19 related items, which was due to expire on 20th June has been extended due to the continuation of pandemic.
- Exemption from 2 percent ACD on import of edible oils and oil seeds under PM’s COVID19 Relief Package has been extended.
- Exemption of duties & taxes on import of Dietetic Foods for Children with inherited metabolic disorders.
- Exemption of all duties & taxes on import of Diagnostic Kits for Cancer and Corona Virus.
- Exemption of Customs duties on inputs of Ready to use Supplementary Foods (RUSF).
- Exemption of Customs duties on import of life saving drug Meglumine Antimonite for treatment of leishmaniasis.
- Extension up to 2023, in exemption of customs duties on imports for setting up new industries in erstwhile FATA area.
- Reduction in regulatory duty on smuggling prone items to bring these items under legal imports
- Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business
- Tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured
- Incentivizing soap manufacturing industry by reducing rate of Additional customs duty on Palm Stearin
- Enhancing scope of concessions available to Special Economic Zones.