ISLAMABAD: Pakistan has taken steps to provide relief to the underprivileged segment of society by abolishing the regulatory duty on the import of second-hand clothing.
This decision was announced through the Finance Bill 2023, which introduced several amendments to the regulatory duty regime.
The amended regime, as outlined in the Finance Bill 2023, includes the following measures:
1. Abolition of regulatory duty on second-hand clothing: The removal of regulatory duty on imported second-hand clothing aims to alleviate the financial burden on the poor population.
2. Reduction of regulatory duty on specific PCT codes: Regulatory duty reductions were implemented for 151 PCT codes related to second-hand clothing, fish, tiles, and sports goods. This measure is expected to facilitate trade and reduce costs for businesses operating in these sectors.
3. Removal of regulatory duty on IT-related equipment: In a bid to promote the Information Technology sector, the government eliminated the regulatory duty on IT-related equipment. This decision aims to encourage technological advancements and innovation within the industry.
4. Removal of regulatory duty on certain materials: The Finance Bill 2023 abolished the regulatory duty on Synthetic Filament Yarn of Polyester, parts for flat panels, monitors, projectors, and Silicon Steel Sheets. These measures intend to support the manufacturing sector and facilitate the importation of necessary materials.
5. Exemption of regulatory duty on special steel round bars and rods: Special steel round bars and rods of non-alloy steel exceeding a diameter of 50 mm were granted exemption from regulatory duty. This move seeks to promote the growth of the steel industry and support related businesses.
6. Increase in regulatory duty on articles of glass: To protect the local industry, the government increased or levied regulatory duty on the import of articles of glass. This measure aims to encourage domestic production and reduce reliance on imported goods.
7. Regulatory duty on inefficient Tungsten Filament Incandescent Bulbs: In an effort to discourage the use of inefficient bulbs, a 20% regulatory duty was imposed on Tungsten Filament Incandescent Bulbs and their parts. This decision aims to promote energy efficiency and the adoption of more environmentally friendly lighting options.
8. Increase in export regulatory duty on Molasses: The export regulatory duty on Molasses was raised from 10% to 15%. This measure seeks to discourage the export of this commodity and ensure an adequate supply for domestic industries.
These amendments to the regulatory duty regime reflect the government’s efforts to provide relief to the economically disadvantaged, promote specific industries, and address environmental concerns.
