The Federal Board of Revenue (FBR) has said that in order to minimise the revenue loss and to mitigate the distortion in the customs tariff structure due to reduction of 5 percent slab to 3 percent, 23 items such as furnace oil, coal, polymers, newsprint, some iron & steel products, cotton yarn, etc, have been maintained at 5 cent from June 25, 2016.
The FBR's customs budget instructions issued here on Monday said the customs duty on Linear Alkyl Benzene (PCT 3817.0000), which is the raw material of Sulphonic Acid, (3402.1110) has been exempted. (Sr. No 35, Part Ill of the Fifth Schedule). The FBR has also reduced customs duty on import of White Spirit (PCT Code 2710.1240) from 10 to 3 percent under Pakistan Customs Tariff from June 25, 2016.
Customs duty on the import of Ethylene (PCT code 2901.2100) and Ethylene Dichloride (PCT 2903.1500) have been effected @ 3 percent for industrial consumers self consumption. (Sr. No 23 & 25, Part III of the Fifth Schedule). Customs duty on import of bicycle chain parts (PCT code 7315.1990) has been reduced from 20 percent to 15 percent. (Sr No 61, Part III of the Fifth Schedule), the FBR said. Customs duty on Stamping Foils (PCT Code 3212.1000) has been lowered from 20 percent to 16 percent in Tariff.
Customs duty on Fatty Alcohol Ethoxylate (PCT 3402.1300), has been reduced to 5 percent for, manufacturers of Sodium Lauryi Ether Sulphate (3402.1190). (Sr. No 29, Part Ill of the Fifth Schedule). Customs duty on the import of refrigerant gases not containing Chlorofluorocarbons (CFCs) or Hydro-Chlorofluorocarbons (HCFCs) (PCT 3824.7800) has been reduced from 15 percent to 11 percent in Tariff, the FBR said. Duty rate of Aluminium Sheet in Coil (PCT code 7606.9190) has been reduced from 20 percent to 11 percent in Tariff.
The words 'deep freezers' in the existing description of PCT code 9032.1010 have been inserted, the FBR said. Customs duty on phthalic anhydride (PCT code 2915.3500) has been reduced from 15 percent to 11 percent in tariff. Regulatory duty has been exempted on import of carbon steel strips (PCT Code 7226.9200), with thickness 0.090 to 0.100 mm and width 22.2 to 22.4 mm. used in the manufacturing of razor blades, through its insertion at Sr. No 60, Part III of the Fifth Schedule @ 11 percent customs duty.
Customs duty on import of parts and components of LED lights has been reduced to 5 percent for registered manufacturers of LED lights. (Part I S.No 23 of the Fifth Schedule). The FBR said that the tariff slabs have been reduced from 5 to 4. The erstwhile 2 percent and 5 percent slabs have been merged into 3 percent and 10 percent and 15 percent slabs have been converted into 11 percent and 16 percent, respectively. The new four customs tariff slabs will be 3 percent, 11 percent, 16 percent & 20 percent. Customs duty has been increased from 10 percent to 20 percent on betel nuts (PCT code 0802.8000) and from Rs 300/kg to Rs 600/kg on betel leaves (PCT code 1404.9020).
Customs duty on import of almonds has been enhanced on in shell (PCT code 0802.1100) from 5 percent to 16 percent and on shelled (PCT code 0802.1200) from 10 percent to 20 percent. Similarly, Customs duty on import of fish frozen (PCT code 03.03) has also been increased from 10 percent to 20 percent. Regulatory duty has been waived off on import of Bead Wire (PCT code 7217.3010) and regulatory duty levied through SRO 236(1)/2016 dated 21.03.2016 will continue after 30th June, 2016. Regulatory duty @ 25 percent has been levied on powdered milk (PCT code 04.02).
Similarly, regulatory duty @ 25 percent has also been levied on whey powder (PCT code 0404.1010). Regulatory Duty @ 5 percent has been levied on import of woven fabric of and 55 of Pakistan Customs Tariff. The salient features of the budget 2016-17 revealed that the reduction of slabs from 5 to 4 (ie 3 percent, 11 percent, 16 percent and 20 percent) as part of tariff rationalisation exercise. Duty on more than 2000 tariff lines, mostly raw materials arid machinery, have been reduced from 5 percent to 3 percent; relief has been provided to the agriculture and industry to spur growth; regulatory duty and additional duty regimes as in place earlier will continue; reformulation of certain relief provisions of Chapter 99 to remove the bottlenecks at operational level, the FBR said.