ISLAMABAD (Kashmir English): Important details of the budget negotiations between Pakistan and the International Monetary Fund (IMF) have come to light. Import, regulatory, and customs duties on various items are likely to be reduced in the new budget.
Sources have said that there is a possibility of a reduction in regulatory duty and additional customs duty on imported items in the upcoming budget, while duty on imported vehicles may also be reduced.
There is a possibility of a reduction in the tariff imposed on raw materials for the export industry and a reduction in taxes on 5G machinery and equipment in the telecom sector.
Hundreds of raw materials for the export industry are likely to be cheaper in the budget.
On the instructions of the Prime Minister, the Ministry of Industry and Commerce has prepared a draft of the National Tariff Policy. Tariffs will be reduced according to IMF targets so that the local industry can be competitive.
Sources say that in the upcoming budget, additional customs duty may be reduced on 3,149 tariff lines of imported goods, while regulatory duty is also likely to be reduced on more than 1,900 tariff lines of imported goods.
Taxes on imported raw materials related to agriculture are also likely to be reduced in the budget. Import duty on agricultural equipment, machinery, and parts that are not locally manufactured may be reduced. The government will also eliminate the remaining 2 percent additional customs duty on 518 tariff lines of the 15 percent slab.
Sources said that additional customs duty on 2,166 lines of the 20 percent slab may be reduced from 4 to 2 percent, and additional customs duty on 468 lines with customs duty of more than 20 percent may be reduced from 6 to 4 percent.
In addition, there is a possibility of a reduction in additional customs duty on machinery and equipment for setting up electric vehicles and bike plants.
