Business News

Finance Minister proposed automatic stay of the amount of
sales tax involved in an order that is the subject matter of an
appeal till the decision of Commissioner (Appeals) subject to
payment of 25% of the principal amount.
Dar proposed exemption from sales tax on premixes for growth
stunting, withdrawal of sales tax withholding on supplies from
registered to other registered persons, reduction in sales tax on
poultry machinery from 17% to 7% and reduction in sales tax on
certain services.
The Finance Minister also proposed reduction in the rate of
sales tax on multimedia projector from 17% to 10% to promote
education.
Talking about revenue measures, the minister proposed increase
in the rate of Federal Excise Duty on cement from Rs.1/ kg to
Rs.1.25/ kg and sales tax on retail sales of zero-rated sectors from
5% to 6% and levy of sales tax on commercial import of fabrics @ 10%
to provide competitive edge to the local producers of fabrics.
He proposed enhancement of Federal Excise duty on cigarettes,
increase and rationalization of sales tax on steel Sector.
On customs side, the minister proposed introduction of new HS
Code Version 2017 and relief for poultry farming sectors by
withdrawing 5% Regulatory Duty on the import of Grand Parent and
Parent Stock of Chicken and reducing Customs Duty from 11% to 3%.
He proposed that Customs Duty may be reduced on the import of
Hatching Eggs from 11% to 3%.
To give relief to the agriculture sector exemption on customs
duty will extend to new and up to 5-year old and used harvesters so
that their import cost is reduced.
He proposed exemption on the import of Ostriches and also
proposed duty relief on various imports of agriculture inputs and
health sector.
Like previous year, this year as well, government proposed
several measures to provide relief to the industrial sector.
The minister proposed reduction in rates Regulatory Duty of
Aluminum waste from 10% to 5% and levied 5% RD on Metalized yarn
besides reducing customs duty on its vital raw materials from 20% to
11%.
Dar said that the government was taking various steps to
improve the life standard of the middle and lower middle classes.
For promoting production of baby diapers, he proposed
reduction in customs on raw materials, not locally produced, from
16% to 11% and from 20% to 16% for manufacturers of Baby Diapers.
For incentivizing telecommunication sector, he proposed
withdrawal of currently leviable customs duties at the rates of 11%
and 16%, and a uniform rate of 9% Regulatory Duty would be levied on
telecom equipment.
Dar proposed that customs duty on veneer sheets may be reduced
from current 16% to 11%.
He said the current concessionary rate of customs duty and
taxes, which is 50% of the total applicable duty and taxes, will
continue on the import of Hybrid Electric Vehicles (HEVs) up to 1800
CC and 25% concession on total duty and taxes will be available for
vehicles with engine capacity between 1801 and 2500 CC.
He said, Auto Development Policy 2016-17 provides for
incentivizing fully electric vehicles to promote fuel conservation
and arrest environmental degradation. A package for relief in duty
on these vehicles will be announced within three months.
Dar said that the concessions on import of set pop boxes etc
is proposed to be extended till 30-6-2018 and proposed concessionary
rate of sales tax at 5% to be extended till 30-6-2018.