To boost industrial growth, the government of Pakistan has proposed tax breaks in the budget

The latest budget presented by the Pakistani government last week aims to reduce the cost of many industries and bring online transactions under the sales tax net. The proposed scheme offers relief measures in customs duty, sales tax and income tax, outlining how the government intends to meet the Federal Board of Revenue’s (FBR) target of Rs. 1,129 billion. Holds

The government has completely reduced or exempted customs duty, additional customs duty and regulatory duty on the import of 584 tariff lines, including fabric, into the value chain of the textile sector. This massive estimate has caused a loss of Rs. 10 billion.

According to Pakistani media reports, the Tariff Policy Board, under a plan to rationalize its rates, has imposed customs duties and additional customs duties on 328 tariff lines related to chemical duty, intermediate goods for the chemical, engineering and leather industries. I have suggested a reduction. .

Under this, 241 tariff lines are fully exempted from customs duty and additional customs duty, while 87 tariff lines have been reduced from 16 per cent and 11 per cent to 3 per cent respectively.

An additional 2,436 additional customs duties on tariff lines have been reduced from 7% to 6%. These items are subject to a 20% customs duty slab, including clothing and footwear.