Federal Board of Revenue (FBR) Chairman Tariq Bajwa said on Saturday that the government has not increased the rate of customs duty on the import of High Speed Diesel (HSD) and POL products such as crude oil and motor spirit, but regulatory duty has been replaced with customs duty, having no impact on their prices.
On the conclusion of the post-budget press conference held here Saturday, Bajwa told media that there is no increase in the rate of duties and taxes on HSD, crude oil and motor spirit. Similarly, the RD has been abolished on these items and replaced with the customs duty.
When asked why duty has been permanently made part of the law, ie, Customs Act, he said that customs duty structure on POL products could be changed every year, the FBR Chairman added. Meanwhile, High Speed Diesel (HSD) is importable at concessionary rate of 7.5 percent customs duty. Regulatory duty at the rate of 2.5 percent was levied in May, 2015. It is proposed that concessionary rate of duty of 7.5 percent and regulatory duty at the rate of 2.5 percent be replaced with customs duty rate of 10 percent. This will have no impact on price of HSD. The measure would generate Rs 5 billion.
POL products namely Crude Oil and Motor Spirit are exempt from customs duty. However, regulatory duty at the rate of 2 percent was imposed on these products. It is proposed to withdraw regulatory duty on these products and levy minimum customs duty rate of 2 percent. This will have no impact on prices of POL products. The measure would generate Rs 19 billion. Furnace oil is exempt from customs duty. However, 7 percent regulatory duty was imposed. It is proposed to reduce regulatory duty on furnace oil from 7 percent to 2 percent and levy 5% customs duty. This will have no impact on price of furnace oil. The measure would generate Rs 15 billion.
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