Under tariff rationalisation, the Central Board of Revenue (CBR) has reduced customs duty on the import of 469 industrial raw materials by 5 percent to 20 percent.
Customs duty has also been reduced to 5 percent on the import of plant, machinery and equipment not manufactured locally.
To provide adequate incentives to the local industrial undertakings, it has been proposed to substantially reduce customs duty on raw materials used by industrial and agriculture sectors.
Through a broad-based consultative process that covered all the stakeholders, particularly Industries and Production Ministry and all the representative bodies of business and agriculture, the CBR has identified 469 such raw materials whose duties are slashed by 20 percent or 10 percent or 5 percent.
These raw materials cover a broad spectrum of industries and agriculture inputs. The key sectors include iron and steel, plastics, precision equipment, locally manufactured plant and machinery, chemicals and dyestuff and miscellaneous items. The list of raw materials include such important items as palm stearlin, polypropylene, Iron ores non-agglomerated, basic dyes, varnishes, resins, polyester film, ingots, steel coils, corrugated sheets, wire, rope, tin waste and scrap, engineering tools, engines, turbo propellers, vacuum pumps, passenger lifts, tower cranes, buckets, shovels, escalators and machines for producing bags, sacks and envelops.
The proposed measure will have far reaching effect on the efficiency and productivity of industrial and agriculture sectors.
The proposed measure amounts to a major relief to our industrial and agriculture sectors as it will significantly reduce their production costs and improve competitive edge. It will stimulate production and reduce prices for the consumers.
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