Finance Bill 2019: reduced duty rates proposed for various imported goods

Finance Bill 2019: reduced duty rates proposed for various imported goods

KARACHI: The government has announced reduction in customs duty on import of various goods.

The reduction in duty has been proposed through Finance Bill 2019.

According to A F Ferguson & Co. Chartered Accountants Firm, by virtue of amendment in First Schedule and Fifth Schedule, reduction in customs duty has been proposed for the following items:

Acetic acids from 16 percent to 11 percent

Oxalic acid from 11 percent to 3 percent

Sheets of veneering from 11 percent to 3 percent

Fibreboard of wood of certain specifications from 16 percent to 11 percent

Fabric (non-woven) from 16 percent to 11 percent

Aluminium cans from 20 percent to 11 percent

Chemicals used in leather or like industries from 20 percent /16 percent to 16 percent /11 percent

Insulation tape double sided from 11 percent to zero percent

Shoe lasts from 20 percent to 16 percent

Other articles of Vulcanised rubber 20 percent to 5 percent

Graphite or other carbon or mixture of these products 11 percent to 3 percent

Other refractory ceramic goods from 11 percent to 3 percent

Other Electric motors and generators from 20 percent to 16 percent

Other automatic regulating and controlling instruments from 20 percent to 16 percent

Multi-ply (clay coated paper and paper board) and aluminium foil from 18 percent to 15 percent

Coils of aluminium alloys from 8 percent to 5 percent

Pre-fabricated room/structures for setting up new hotels/motels in Hill Stations, Gilgit-Baltistan, AJK, and Coastal Areas of Baluchistan from 11 percent to 8 percent

(ii) Following new concessions have been proposed under the Fifth Schedule:

– Laser transmitter, laser receiver, control box, rigid mast pack, with or without scraper at concessional rate of 2 percent

– Plant and Machinery by developers, contractors and service companies involved in infrastructure development of Large Diameter Gas Pipelines(i.e. 24” and above) projects at concessional rate of 10 percent to 0 percent subject to certain conditions

– Aluminium sheets and coils and aluminium foil, AKD wax and dispersing agents at concessional rate of 5 percent

– Imports by manufacturer of infant formula milk registered under Sales Tax Act, 1990 at concessional rate of 5 percent

– Import of Exposide resin, if imported by manufacturer of powder coatings registered under Sales Tax Act, 1990 and subject to annual quota by IOCO at concessional rate of 10 percent

– Polymers of ethylene and other plastic raw materials on import by manufacturers of diapers and sanitary napkins registered under Sales Tax Act, 1990 at concessional rates of 16 percent to 5 percent

– Import of carbon steel strip imported by manufacturer of shaving bladed/razors registered under Sales Tax Act, 1990 at concessional rate of 5 percent

– Import of CNG vehicle conversion kits approved by OGRA imported by authorized dealers at concessional rate of 5 percent

(iii) Following amendments for availing concessions earlier granted have been proposed for the following sectors:

Sector Particulars

Agriculture Sector

Certain conditions for availing the concession on import of agricultural machinery have now proposed to be waived off

Power transmission and grid stations

An additional condition has been proposed for availing concessional duty on import of machinery and equipment meant for power transmission and grid stations. The goods shall not be sold without prior approval of the FBR.

Marble, granite and gem stone extraction and processing industries

Additional condition for the concessional rate on machinery and equipment is proposed to be added with respect to disposal of the imported machinery.

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