Zero-rated tariff on capital goods urged

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has sought zero percent duty on import of capital goods, if not manufactured locally, for all industrial concerns and commercial importers, as all the capital goods, including plant and machinery are ultimately used by the industry, a statement said on Tuesday.

“This would help reduce the cost of import and stimulate grown of industry, including expansion of existing industrial capacity and generate employment and export surplus,” said Syed Mazhar Ali Nasir, senior vice president of FPCCI.

He argued there should be no upfront cost on plant and machinery, new or secondhand for initial installation, balancing, modernisation or replacement, as its installation resulted in taxation activity.

Nasir said that the import of textile machinery is zero-rated, whereas the Fifth Schedule to the Customs Act, 1969 provided reduced rate of Customs duty on the import of all other capital goods.