ISLAMABAD: Pakistan has drawn up a plan to liberalize trade by reducing import tariffs, which will result in a reduction in tax revenue of Rs 476 billion, but will increase the country’s exports and economic growth.
According to the details, this plan to reduce the tariff on the import of export supporting items has been discussed with the Prime Minister Shahbaz Sharif and the Prime Minister has given the principle approval of the plan, however, the approval of the cabinet is still pending, and the most important step has come. Approval is sought from MF.
The special committee chaired by Federal Minister of Commerce Jam Kamal Khan said in its proposal that the reduction in the tariff on the import of items required for export will result in a loss of 476 billion rupees during 5 years, but as a result of this, economic activities will increase. And local industries will gain the ability to compete with other industries in the region.
According to the plan, it has been decided to remove regulatory duties, additional customs duties, sales tax and withholding tax from export-based imports to bring down the prices of export-based imports, while reducing the average customs tariff from 20 percent to 15 percent. A percentage is proposed.
Similarly, it is proposed to abolish the customs duties exemption given under the fifth schedule of the Customs Act. According to the documents, the implementation of the project will be able to collect 476 billion rupees in 5 years and 282 billion rupees less tax in 3 years. This shortfall in tax revenue will be compensated by the increase in tax collections resulting from economic activities.
However, the FBR is opposing the project. It should be noted that the Prime Minister had set up the Tariff Rationalization Committee under the chairmanship of Commerce Minister Jam Kamal in July. It is expected that the Prime Minister will announce the project in September after obtaining approval from the IMF. will
