Beside introducing the concept of 'Medical Tourism' through good quality hospitals in Pakistan, the government has announced special tax incentive packages in the shape of reduction in customs duty on the import of different items/equipment by the poultry industry, dairy sector, horticulture and floriculture.
For the promotion of medical tourism, the government has also announced exemption of duties and taxes on the import of plant/machinery, medical, surgical, dental or veterinary machinery/equipment, fixtures, fittings and furniture, diagnostic kits not manufactured locally.
For the development of health sector, customs duty has been abolished on the import of all medicines for cancer; drugs used for kidney dialysis and kidney transplant; all types of vaccines for Hepatitis; interferon and other medicines for Hepatitis; all vaccines/anti-sera, cardiac medicine; injection anti-D immunoglobulin; bloods bags CPDA.1; medicines for HIV; all medicines for Thalassemia, whereas the duty on import of eye drops and medicinal ointment reduced.
The customs duty would be applicable from 5 to 25 percent on different types of industrial raw materials and inputs, whereas its maximum limit was 125 percent some years back.
The government has also simplified the baggage rules for the overseas Pakistanis and additional allowances have been introduced for foreign exchange remittance card-holders. Instead of three, five types of cards would be issued to benefit maximum number of overseas Pakistanis under the scheme.
Under the new TR, gift and baggage scheme, vehicles should not be more than five years old.
The tariff-based system would be introduced from July 1, 2006 for the auto sector replacing the existing deletion programme.
The duty has been abolished on the import of tractors to optimise the output of the agriculture sector, whereas duty has been reduced on the import of every type of refrigeration system, forklift trucks and racks. Whereas, regulatory duty has been slapped on the export of all kinds of scrap.
The customs duty has been reduced on the import of multi-axle trucks, buses, dumpers and prime movers. The duty on these vehicles in CKD condition has been reduced from 20 percent to 10 percent and in CBU condition from 60 percent to 30 percent. The customs duty has been brought down from 25 percent to 20 percent on the import of tyres for cars.
To encourage foreign investment in the retail sector, the wholesale and retail chains have been given incentives to import items/equipment required for establishing the related paraphernalia at the reduced rate of customs duty. The decision is in line with the income tax relief already extended to the large trading houses.
The exemption of customs duty would be available on material used for manufacturing of fixed wireless towers for CDMA, CNG equipment for assembly, inputs of leather and leather-made products, broadcasting equipment, computer hardware and parts. The customs duty on the import of equipment for assembly of CNG kits and bicycle parts has been abolished.
The government has also given incentives to the manufacturing sector by lowering the rate of duty on the import of materials imported by the leather/footwear industry, marble/granite sector, pharmaceutical industry and rice parboiling.
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