Decision aimed at curbing imports, Prices of several imported goods to go up, FBR official says new regime will generate Rs25b revenue
ISLAMABAD – The government has enhanced regulatory duty (RD) on 731 commodities to control the soaring imports of the country, which would increase prices of several imported goods.
The enhanced RD has been imposed on around 731 items including used cars, tyres, mobile phones, electronic goods, readymade garments, ceramics tiles, pulses, fruits, dairy items, sports goods, and cosmetics etc. The Federal Board of Revenue (FBR) on Tuesday issued the notification of increasing RD on imported commodities following the decision of the Economic Coordination Committee (ECC) of the cabinet. The ECC recently approved the decision to increase RD on imported goods to control imports bill, which widened the current account deficit of the country.
“The decision would not only help in controlling imports but it will also generate additional revenue of Rs20-25 billion during the current fiscal year,” said an official of the FBR. He said that the government had targeted non-essential commodities for increasing duties, as imports of edible oil, petroleum products, chemicals, fertilisers, and machinery could not be curtailed.
Pakistan’s trade deficit had recorded at $9.01 billion during the first quarter (July-September) of the current fiscal year as against $7 billion during the same period of the previous year showing an increase of 29.75 percent, according to Pakistan Bureau of Statistics (PBS).
Imports had increased rapidly as compared to the exports. The exports had registered at $5.17 billion during July-September of 2017-18 as compared to $4.67 billion of the corresponding period of the last year, showing a growth of 10.84 percent.
Meanwhile, the imports had also shown an increase of 22.19 percent and recorded at $14.26 billion during the first quarter of the current financial year as against $11.67 billion of the same period last year. The government had targeted imported goods to control the trade deficit of the country. Pakistan’s foreign exchange reserves are sharply depleting due to the widening of the current account deficit. The reserves are sharply tumbled by over $4 billion in last one-year to $19.8 billion. The current account deficit had widened 102 percent to $2.601 billion in the first two months of the current fiscal year, as higher imports growth offset the improvement in exports.
According to the notification issued by the FBR, the government has enhanced the RD on imports of live poultry by 10 percent, fish 25 percent, milk and cream 25 percent, yogurt 20 percent, butter 20 percent, cheese 20 percent and RD on curd has been increased to 15 percent. Meanwhile, the government has enhanced the RD on natural honey by 20 percent, pineapples 20 percent, avocadoes 20 percent, guavas 15 percent, mangoes 15 percent, kino 20 percent, grapefruit 15 percent, lemons 20 percent and watermelon 40 percent.
Similarly, the government has increased the RD on imported wheat to 60 percent, maize 30 percent, wheat flour 25 percent and maida 25 percent. The government has increased the RD on macaroni raw 20 percent, corn flakes 20 percent, sweet biscuits 20 percent, waffles and wafers 20 percent, rusks and toasted bread 20 percent, pickles 20 percent, tomatoes 20 percent, potatoes 50 percent and pineapples 40 percent.
In electronic goods, the government has enhanced the RD on ceiling fan by 20 percent, pedestal fan 20 percent, table fan 20 percent, exhaust fan 20 percent, freezers 40 percent, water dispenser 35 percent, food grinders 20 percent, fruit mixers 20 percent and fruit or vegetable juice extractors 20 percent.
The RD has been increased on wash besan by 40 percent, bath tubes ceramics 20 percent, dinner sets 40 percent, dishes 40 percent, plates 40 percent, teacups 40 percent and tableware and kitchenware 15 percent. In sports goods, the government has enhanced the RD on balls 20 percent, badminton rackets 50 percent, footballs 50 percent, hockey balls 50 percent and cricket balls 50 percent.
