The Federal Board of Revenue (FBR) has withdrawn additional customs duty on import of raw materials of around 174 tariff lines.
The FBR has issued SRO 81(I)/2021, dated January 22, 2021, to abolish additional customs duty on import of raw materials of 174 tariff lines.
The SRO was issued in compliance with the decision made by the Economic Coordination Committee (ECC) during its held on January 6, 2021. The Ministry of Commerce had presented a summary regarding removal of additional 2pc customs duty on raw materials on a horizontal basis under National Tariff Policy 2019-2024.
The ECC approved the summary with a direction that the budget cycle must be observed while planning important incentives for businesses and industries in order to ensure smooth planning and subsequent implementation during the financial year.
Through the recent notification, the FBR has amended the SRO 572(I)/2020, dated June 30, 2020. With the amendment, the FBR has replaced the list of raw materials that had allowed waiver of additional customs duty on import or raw material on 25 tariff lines.
Through the SRO 572(I)/2020 dated June 30, 2020, the FBR had imposed additional customs duty at two, four and seven per cent on import of goods.