Govt increases regulatory duty on 508 products

ISLAMABAD

The government on Wednesday notified increase in regulatory duty (RD) on the import of 508 non-essential items by various rates ranging from 5 per cent to 25 per cent.

The Federal Board of Revenue issued two different notifications imposing a 25 per cent RD on the import of items like frozen fish, fish fillets, milk cream, whey powder, betel nuts, 20 per cent on yogurt, butter, cheese, dairy spread, fruits, honey and electronic products, and 10 per cent on the import of live poultry, ducks, geese and turkeys, coconuts, Brazil nuts, cashew nuts.

An official source said the duty was to be increased from July 01, 2017. However, facing a shortfall in revenue collection during the current fiscal year and seeing large number of import orders before the start of next fiscal year, the government has decided to increase RD immediately.

Most of the items which are brought in the RD net consist of edible items, while some of them are machinery and makeup items. The government has identified two major reasons for imposing RD; one was to reduce the import bill and combat smuggling of goods through porous Pak-Afghanistan border.

However, some of the experts are of the opinion that imposition of RD on edible items will increase inflationary pressure. Their argument is that Pakistan has food deficiency in the processed vegetable, fruits, nuts and dairy sectors.

It will further increase food deficiency as vegetable, fruit, meat and dairy processing in the country is at a primary level. Increase in consumption of processed food will help attract investment in the sector.

Amer Sial
Amer Sial
Amer Sial is staff reporter at Pakistan Today. He can be reached at [email protected]

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