The five-year capping for import of used/reconditioned cars and jeeps has been reduced to three years so that the massive influx of such vehicles could be contracted and domestic industry could attain stability. This three-year condition would also be applicable to TR, gift scheme and baggage rules.
The budget has also proposed withdrawal of CVT on imported vehicles. However, to maintain protection level intact, adjustment in customs duty at the rate of 5 percent, 10 percent and 15 percent for different CCS of cars is proposed. There is a proposal to levy 5 percent withholding tax on local vehicles, whereas, to facilitate middle income groups, customs duty on 800 cc cars is not being charged.
To increase exports and ensure availability of raw material for the export industry, the budget has proposed withdrawal of customs duty on machinery used in horticulture, furniture marble and granite, surgical and medical instrument business.
Similarly, the customs duty on raw material used in electrical, capital goods, paper and paper board, chemicals, plastic and rubber industries is proposed to be reduced by 5 percent.
The budget has also proposed withdrawal of customs duty on generators for home consumption and on components used in alternative energy sources. Reduction in customs duty has also been proposed on generators for industrial consumption.
To benefit textile exporters, the existing WHT rate of 0.75 percent to 1 percent is being rationalised and 1 percent rate of WHT has been proposed.
Poultry feed items, poultry vitamins, evaporation air coolers, insulated sandwich panels and silos for storage of poultry have been exempted from duty, while in order to safeguard the local industry from an onslaught of foreign goods, duty rates have been increased on import of poultry meat, welded stainless steel pipes, etc.
Other customs budgetary measures include amnesty scheme for condonation of delays in submission of installation/consumption certificates etc, amnesty from payment of fine/penalties and surcharges on payment of principal amount. Furthermore, reduction/elimination of duty rates on specified diesel generating sets, inputs used by the newspaper industry are being provided at concessionary rates. Duty rates on equipment for broadcasting sector have been reduced to 5 percent and extension of incentives for expansion and up-gradation of existing hospitals.