The Federal Board of Revenue is making comprehensive changes in the SRO.565 (I)/2006 to exempt customs duty on the import of raw materials, sub-components, components and assemblies (not manufactured locally) to facilitate the local industry in the budget 2008-09.
Sources told Business Recorder that the board intends to offer concessions to different local sectors on the recommendations of the Engineering Development Board. The on-going budget exercise is contemplating massive changes in SRO.565 (I)/2006 to put in place a concessionary regime for the local manufacturers. There is possibility that either new items would be incorporated in the notification or scope of existing exemptions would be extended to other industries specified in the SRO.
Sources said that the SRO.565 relates to the exemption of customs duty on the import of raw materials, equipment and apparatus used in the manufacture of specific goods by the local industry. The notification covers a wide-range of local sectors, availing concessionary rate of customs duty on the import of inputs used in the finished products.
However, concessions would not be extended to items "not manufactured locally" under this notification. These are goods, which are not included in the list of locally manufactured goods, specified in the relevant Customs General Order (CGO) or declared as such by the FBR or EDB.
The FBR is consistently following a policy to encourage the development of indigenous dusting. Presently, 116 industrial sectors and sub-sectors are enjoying either total exemption or reduced rate of customs duty on their inputs, sources added.
In last budget, exemption regime was extended to sectors like air-conditioners, deep freezers, refrigerators, evaporators and condensers, alkyd resins, CNG dispensers, wire and cables, diesel generating sets, disposable syringes, disposable infusion sets, dyes stuff and chemicals, electric meters, paper and paper board, printing ink, telephone sets, viscose staple fiber and gypsum board.
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