Supplementary finance bill: Govt releases salient features for customs duty
Regulatory duty is being removed on input materials
ISLAMABAD: Government on Thursday issued salient features of changes brought into Customs duty regime through Finance Supplementary (Second Amendment) Bill, 2019.
The changes to customs duty regime are as follow:
1. Benefit of exemption from customs duty on import of all items for Ostomy use is being extended in addition to colostomy bags and appliances.
2. Existing 5% customs duty on import of newsprint is being exempted.
3. Customs duty on Plastic Moulding Compound is being reduced from 5% to 3%.
4. Customs duty on industrial inputs covered under (53 tariff lines) is being either removed or reduced and Additional Customs Duty on industrial inputs covered under 22 tariff lines is being removed. This measure will be implemented with effect from 31st March, 2019.
5. Regulatory Duty on industrial inputs covered under 30 tariff lines is being either removed or reduced.
6. Regulatory duty on smuggling prone items like Tyres, Padlocks, Groundnuts, Food / Chocolate preparations, Floor Coverings, Vacuum flasks falling under 24 tariff lines is being reduced.
7. Regulatory duty is being removed on input materials (approximately 200 tariff lines) imported under SRO 655(I)/2006 dated 05.06.2006 that are used for manufacturing of auto parts by local vendors.
8. Collection of duty and taxes on mobile phones is being rationalized through collection of all duty/taxes on uniform slabs based on C&F values at the fixed rates.
9. Regulatory duty leviable on export of lead, lead products, scrap of lead and copper scrap is being removed in respect of exports made under DTRE / Manufacturing Bond Schemes.
10. In order to facilitate exporters, especially SMEs, significant changes are being made in the Export-Oriented Schemes with a view to improve competitiveness of the export sector.
