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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