Government to Phase Out Import Duties to Boost Investment

In an effort to stimulate investment and enhance exports, the federal government has resolved to substantially lower import duties, including a gradual elimination of additional customs duty (ACD) and regulatory duty (RD).

According to an announcement from the Prime Minister’s Office (PMO), Prime Minister Shehbaz Sharif has instructed the removal of ACD, which currently fluctuates between 2% and 7%, and RD, which now ranges from 5% to 90%, over the course of the next four to five years.

Furthermore, he sanctioned a proposition to limit customs duty (CD) to a maximum of 15%. Presently, CD can surpass 100% on particular items.

Moreover, the number of CD slabs has been decreased to four, which the government anticipates will considerably diminish legal intricacies connected to imports and guarantee equitable conditions for diverse sectors, according to the PMO statement.

The announcement followed a crucial meeting on the National Tariff Policy held at the Prime Minister’s Office.

Presiding over the meeting, PM Shehbaz affirmed his dedication to ensuring that the government will exert every effort to attain a robust economy, generate job opportunities, and secure the complete and sustained eradication of inflation.

He stated that a thorough strategy for fundamental economic overhauls has been devised following extensive deliberation.

As a component of this economic revitalization plan, the prime minister has endorsed a progressive decrease in import tariffs, the statement conveyed.

“This action is regarded as a significant advancement toward economic enhancement and will set the stage for export-oriented expansion.

“The verdict is projected to aid in curtailing unemployment and managing inflation. Moreover, it is anticipated to draw heightened international investment, which, in turn, will foster fresh employment prospects.”

According to the PMO, the resolution will pave the path for amplified foreign investment and furnish domestic industries with simpler and more economical access to raw materials, intermediate goods, and capital equipment.

During the assembly, the prime minister meticulously examined all facets of the proposal. He underscored that diminishing tariffs will not only stabilize the current account deficit but also contribute to yielding greater revenue than what is presently amassed via customs duties.

PM Shehbaz also established an implementation committee.

Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Economic Affairs Ahsan Iqbal, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Petroleum Ali Pervaiz Malik, Special Assistant to the Prime Minister Haroon Akhtar, alongside high-ranking officials from pertinent departments, were in attendance at the gathering.