FBR slaps up to 25pc duty on exports, 10pc on imports

KARACHI: The Federal Board of Revenue (FBR) imposed regulatory duty of up to 25 percent on export of various goods, including hides and skins and scrap of coppers, while the board also imposed up to 10 percent duty on imports of glass and other items, officials said on Friday.

Tax officials said the FBR imposed regulatory duty on around 10 different tariff lines to discourage export of such goods. The duties will remain enforced till June 30, 2019.

The FBR imposed 25 percent regulatory duty on export of waste and scrap of copper, including waste and scrap of primary cells, primary batteries and electric accumulators, spent primary cells, and electric parts of machinery or apparatus.

The officials said the FBR imposed 20 percent regulatory duty on export of raw and wet blue hides and skins. The regulatory duty will increase the export value of such goods, they added.

Another 15 percent duty has been imposed on export of molasses.

Regulatory duty will be levied on export of high speed diesel and superior kerosene oil to Afghanistan, equivalent to the price differential claims (PDC) in rupees per liter as notified by the ministry of petroleum and natural resources, plus one percent of prevalent consumer price to cover for foreign exchange loss.

The FBR introduced Re0.68 and Re 0.62 as one percent coverage for exchange loss on consumer price. The rates will remain effective till an amendment is made by the ministry of petroleum and natural resources.

The board also issued a new statutory regulatory order (SRO640(I)/2018) under which regulatory duty on various items increased by 2 to 10 percent to curb imports and promote import substitution. The new SRO superseded the previous one notified in October 2017.

Under the new SRO, the board slapped up to 10 percent regulatory duty on glass items (float glass and other glass) with import value in the range of $10 million to $50 million.

Duties on Mineral waters, calcium carbide, hydrogen per oxide, razors, safety blades and chlorodifluoromethane were increased by 5 to 10 percent.

However, duty on sulphonic acid was reduced to 10 percent from 20 percent. Import duties on yarn, polyvinyl chloride resin, and steels products remained unchanged.

Topline Securities said the additional duties are expected to generate Rs25 to 28 billion in revenue.

“We do not expect this measure to significantly curb country’s imports,” the brokerage said in flash note.