The Federal Board of Revenue (FBR) will continue with the policy of imposing regulatory duty (RD) on imported items in the upcoming budget (2017-18) under revenue generation measures. Sources told Business Recorder here on Friday that it has been principally agreed to maintain regulatory duty on many items under the government policy to generate additional revenue at import stage. During July-April 2016-17, the Customs department has shown the highest growth of over 25 percent in collection of Customs duty on imported items.

The imposition of regulatory duty would be used as a revenue generation measure in budget (2017-18). In last budget, regulatory duty was waived off on import of bead wire (PCT code 7217.3010). The regulatory duty levied through SRO 236(1)/2016 dated 21.03.2016 continued after June 30, 2016. Regulatory duty at 25% was levied on powdered milk (PCT code 04.02).

Similarly, regulatory duty at 25% was also levied on whey powder (PCT code 0404.1010). The regulatory duty at 5% was levied on import of woven fabric.Presently, a wide range of items are subjected to RD at 5, 10, 12.5 and 15 percent at the import stage. Different SROs governed regulatory duty like SRO 568(I)/2014 of June 26, 2014 which was amended from time to time with a view to facilitating import of steel products including billets, HRC, CRC, bars/rods, wire rods, pipes/tubes, aluminium alloy, aluminium waste and scrap, etc, to protect the local industry. Recently, the government had abolished regulatory duty and customs duty on import of items including cotton and manmade fibre falling under different Pakistan Customs Tariff (PCT) headings under the PM package for exporters.

Copyright Business Recorder, 2017