New tariff policy to be unveiled in June 2019

KARACHI: Government will introduce a new National Tariff Policy by next year with an objective to eliminate anomalies in the existing structure, Advisor to Prime Minister for Commerce and Industry Abdul Razzak Dawood said on Saturday.

“The ministry of commerce has prepared a draft of the national tariff policy and anomalies in customs import tariff are being rationalised,” Dawood said, addressing the business community at the Karachi Chamber of Commerce and Industry (KCCI).

The PM advisor said the comprehensive policy will be presented by June next year and it would remain unchanged for at least three years to build confidence of the industry.

Dawood said the government has taken the power of making the customs tariffs from the Federal Board of Revenue (FBR), “which would have far reaching effects”.

On government’s performance in 100 days, he said initiation of FBR reforms is the most commendable.

PM Advisor for Commerce said the government will seek technology and small and medium enterprise development funds and assistance for training local workforce from Japan during his visit.

Dawood said the government is also preparing an industrial policy primarily aimed at export enhancement and import substitution. “Incentives will be accorded to strategic industries, value-added export sector and young entrepreneurs,” he added. “However, there will be no incentives on export of basic products such as yarn, as government intends to discourage export of basic goods.”

Junaid Makda, president of KCCI underlined the problems faced by the business community.

“Industry needs uninterrupted gas supply, lower cost of utilities and support to value-added export sector,” Makda said.

President KCCI said a focal person should be appointed at the Prime Minister secretariat to deal with the issues of export sector.

“Monthly meetings should be held at PM secretariat to discuss the issues and status of exports,” he added.

KCCI president complained that the government has not been considering trade bodies’ budget recommendations for the last two years. He hoped that the proposals would be considered in the upcoming budget.

Siraj Kassam Teli, chairman of Businessmen Group said the bureaucracy has been misleading the governments for the last 70 years. “The bureaucracy divided the industry into two: export-oriented industry and general industry,” Teli said. “There is discrimination in rates of utilities and import duties for general and export-oriented industries, which created a sense of deprivation.”

The senior industry leader said the government must support both the industries. Teli said the Federation of Pakistan Chambers of Commerce and Industry is encroaching the domain of KCCI and other trade bodies. He urged the advisor to define and streamline roles of trade bodies.

Anjum Nisar, ex-president of KCCI said energy and borrowing costs and duty/taxes on imported inputs are hurting the exports sector. He said rupee has depreciated 33 percent since January, dealing a big blow to the country’s industry.