Islamabad – The Federal Board of Revenue (FBR) has withdrawn additional customs duty on various imported raw materials.
The decision, reflected in the issuance of SRO 191(I)/2019, marks a significant step towards creating a more conducive environment for domestic manufacturing and trade.
This development comes as an amendment to the earlier notification SRO 630(I)/2018, dated May 28, 2018. The FBR’s decision to withdraw additional customs duty is expected to have positive implications for a wide range of industries dependent on the imported raw materials that were previously subjected to extra charges.
Around 22 Pakistan Customs Tariff (PCT) codes have been affected by the withdrawal of additional customs duty. Among the items on which the duty has been lifted are crucial raw materials integral to various manufacturing processes. Some notable items that will benefit from this decision include Toluene, Butanone (Methyl Ethyl Ketone), synthetic organic tanning substances, tanning preparations based on chromium sulfate, disperse dyes, basic dyes, mould release preparations, shoe adhesives, acrylic binders, machinery for making or repairing footwear, and buttons.
The removal of additional customs duty on these items is expected to provide relief to businesses engaged in the production of textiles, chemicals, leather goods, and footwear, among others. This move aligns with the government’s broader efforts to boost the industrial sector, enhance competitiveness, and attract foreign investment.
By streamlining the duty structure on imported raw materials, the FBR aims to reduce the cost of production for local manufacturers, making their products more competitive in both domestic and international markets. This, in turn, is expected to stimulate economic activity, generate employment opportunities, and contribute to overall economic growth.
Industry experts have welcomed the FBR’s decision, noting its potential to have a positive impact on the ease of doing business in Pakistan. The withdrawal of additional customs duty on essential raw materials is seen as a proactive measure that addresses the concerns of the business community and encourages investment in key sectors.
The move also aligns with the government’s commitment to fostering a business-friendly environment and removing impediments to industrial growth. As the country looks to strengthen its economic resilience, such targeted policy interventions play a crucial role in supporting the development of a robust and diversified industrial base.
The FBR’s decision to withdraw additional customs duty on various imported raw materials is a positive step towards creating a more favorable business environment in Pakistan. By reducing the cost burden on industries dependent on these raw materials, the government aims to stimulate economic growth, enhance competitiveness, and attract investment. This move is likely to be well-received by the business community and contribute to the overall development of the country’s industrial landscape.
