Govt in talks with IMF to reduce Import Duties

June 2, 2021

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According to a report by Jang newspaper, Federal Revenue Board (FBR) is in negotiations with the International Monetary Fund (IMF) to eliminate or reduce taxes on imported goods, while customs duties on raw materials to be removed.

Sources at FBR said that government is all set to take special measures in the upcoming budget to revive the industries. The elimination/lowering of duties on imported raw materials will benefit nearly 40 industries. The initial proposal is to eliminate or significantly lower Taxes for 600 items.

FBR sources said the tax rate will be lowered on nearly 2,500 import items as the government seeks to provide cheap raw materials for the export industry.

Sources said that in addition to raw materials, there are suggestions for tax exemptions for imported machinery, textiles, plastics, pharmaceutical equipment, and perhaps a tax exemption for raw materials. materials.

According to FBR sources, there is a possibility to exempt tax on equipment and raw materials used in the manufacture of footwear. A proposal is also being considered to end customs duties on more than 3,000 imported goods.