The federal government is examining a proposal to levy one-time flood disaster import duty on non-essential and luxury items to generate additional revenue for the flood victims. It is learnt here on Friday that the Federal Board of Revenue and the Ministry of Finance are reviewing the proposal to impose one-time duty excluding essential food items, commodities and import of oil and POL products.
So far, preliminary working is under way to determine the rate and the revenue impact of the "duty". It is being examined whether the proposal is feasible or not. The estimated revenue collection from this duty would be determined in view of the rate and scope of the duty, if imposed. The government has to specify the relevant Pakistan Customs Tariff headings as well as the rate of duty to work out the actual revenue realisation through this measure for flood victims.
When contacted, FBR chairman Sohail Ahmed said: "The proposal is on the table of policy markers to decide its applicability or not." Sources said the government had imposed flood relief surcharge in 1992 to arrange funds for the victims of the flood and similar arrangement is also being considered to generate funds for the victims of flood 2010. In case the government imposes "income tax surcharge" as well as "flood disaster import duty," it would be instrumental in generating additional revenue for the victims of devastating floods, sources added.
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