The Pakistani government’s latest budget, revealed last week, aims to reduce input costs for some industries and bring online sales under net sales tax. Providing tariff, sales and income tax relief to the industrial sector in a draft plan explaining how the government will achieve the Federal Revenue Service (FBR) target of raising 1,129 billion rupees.
The government has completely reduced or exempted tariffs, additional tariffs and regulatory obligations on imports of 584 tariff lines containing textiles in the textile sector value chain. The estimated loss of revenue from this key measure is 10b RS.
According to media reports in Pakistan, the Tariff Policy Committee has reduced tariffs and added tariffs on 328 tariff lines related to raw materials such as the chemical, engineering and leather industries, chemicals and intermediate goods as part of its tariff rationalisation program. This completely exempted 241 tariff lines from tariffs and additional tariffs, and reduced 87 tariff lines from 16% and 11% to 3%, respectively. On the 2,436 tariff lines, additional tariffs have been reduced from 7% to 6%. These items are placed under a 20% tariff slab, including clothing and footwear.
