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Budget 2020-21: Reduction of customs duty on 40 raw materials of various industries

Budget 2020-21: Reduction of customs duty on 40 raw materials of various industries

KARACHI: Following are the salient features of custom duty and regulatory duty measures proposed by the government for FY 2020-21.

  • Exemption of additional custom duties on those tariff lines which are now at 0% customs duty in tariff.
  • Reduction of custom duty on 40 raw materials of various industries.
  • Tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11% to 3% and 0%.
  • Allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house printing facility.
  • Reduction in regulatory duty from 12.5% and17.5% to 6% and11%, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208, 7225 and 7226, respectively.
  • On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination.
  • Exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate.
  • Exemption of custom duty on import of raw material by anufacturer of syringes and saline infusion sets.
  • Exemption of customs duties on import of raw material by manufacturers of buttons.
  • Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.
  • Reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of Wire rod.
  • Exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations.
  • Exemption of custom duties on import of raw material by beverage can manufacturers.
  • Reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry.
  • Exemption from custom duties on import of 61 COVID19 related items, which was due to expire on June 20 has been extended due to the continuation of pandemic.
  • Exemption from 2% ACD on import of edible oils and oil seeds under PM’s COVID19 Relief Package has been extended.
  • Exemption of duties and taxes on import of Dietetic Foods for Children with inherited metabolic disorders.
  • Exemption of all duties and taxes on import of Diagnostic Kits for Cancer and coronavirus.
  • Exemption of Customs duties on inputs of ready to use Supplementary Foods (RUSF).
  • Exemption of Customs duties on import of life saving drug Meglumine Antimonite for treatment of leishmaniasis.
  • Extension up to 2023, in exemption of customs duties on imports for setting up new industries in erstwhile FATA area.
  • Reduction in regulatory duty on smuggling prone items to bring these items under legal imports.
  • Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business
  • Tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured.
  • Incentivizing soap manufacturing industry by reducing rate of Additional customs duty on Palm tearin.
  • Enhancing scope of concessions available to Special Economic Zones.