ISLAMABAD, Jun 10 (APP): The government on Friday proposed rationalization of custom duty in the Federal Budget 2022-23 to provide relief to different sectors, including packaging industry and agriculture.
For the packaging industry, custom duty (CD) and additional customs duty (ACD) on ammonium, polymer, ethylene , BOPP etc, was proposed to be rationalized, while CD and ACD on 10 tariff lines pertaining to direct and reactive dyes were reduced.
For the agriculture sector, customs duty exemption was extended further to Farm Mechanization and Logistics including agriculture machinery pertaining to irrigation and drainage processing, plant protection equipment as well as machinery, equipment and other capital goods for miscellaneous agro-based set-ups in Sr 1, 2 and 3 of Part-I of Fifth Schedule.
To incentivize the coating industry, CD and ACD were proposed to be exempted on aluminum paste and powder, and reduced on glycerol crude and glycerol.
For the manufacturers of filters other than automotive, CD and ACD were
reduced on their raw materials i.e, adhesive, epoxide resins, filter media/ paper, non-woven fabric media, and steel plates / sheets of prime quality.
To incentivize the footwear industry, customs duty was reduced on different categories of other woven fabrics and artificial flowers / foliage of other materials.
To incentivize LED lights and bulbs manufacturers, CD was exempted on import of five more items i.e, aluminum electrolytic capacitor, SMT electrical transformer, aluminum alloy sheet, tantalum capacitors (DIP/SMD) and other inductors, small transformer, coil (DIP/SMD).
Furthermore, the scope of exemption was extended for the manufacturers of parts of LED light and bulbs.
Tariff structure on the different tariff lines related to MDF / HDF was rationalized evenly.
To encourage local manufacturers of brush ware, the customs duty was exempted on import of poly-butylene terephthalate. Likewise, CD & ACD on import of stamping foils was also exempted for manufacturing of optical fiber cable. Tariff structure on import of synthetic filament yarn, monofilament and staple fibers of polypropylene was rationalized to resolve the cascading issues.
To encourage export oriented industry, CD and ACD was exempted on import of guts, bladders and stomachs of animals etc.
Reduction in CD and ACD rates on import of plywood, veneered panels & similar laminated wood, poly (methyl methacrylate) and cyanoacrylate was proposed.
Extension in scope of concession on import of organic composite solvents and thinners for the manufacturers of Dibutyl Orthophthalates was also announced.
To keep the prices of medicines stable in the market and to encourage local manufacturing of pharmaceuticals, customs duty was exempted on 26 more APIs, on one drug -Grafalon-In Vision and Insvision Device with its complete components.