The highly anticipated annual budget for the fiscal year 2020-21 is finally here. Some of the salient features and highlights revealed so far are mentioned below:
Industrial Relief Measures:
1. Exemption of additional custom duties on those tariff lines which are now @ 0% customs duty in tariff.
2. Reduction of custom duty on 40 raw materials of various industries.
3. Tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11% to 3% and 0%.
4. Allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house printing facility.
5. Reduction in regulatory duty from 12.5% and 17.5% to 6% and 11%, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208 and 7225& 7226, respectively.
6. On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination.
- Exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate.
- Exemption of custom duty on import of raw material by manufacturer of syringes and saline infusion sets.
- Exemption of customs duties on import of raw material by manufacturers of buttons.
- Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.
- Reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of Wire rod.
- Exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations.
- Exemption of custom duties on import of raw material by beverage can manufacturers.
- Reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry.
Miscellaneous:
1. Reduction in regulatory duty on smuggling prone items to bring these items under legal imports.
2. Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business.
3. Tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured.
4. Incentive’s soap manufacturing industry by reducing rate of Additional customs duty on Palm Stearin.
5. Enhancing scope of concessions available to Special Economic Zones.
Conclusion:
If approved the measures taken on regulating or removing duty on 40 plus raw materials will play a vital role in uplifting the economy by supporting key export industries. Specially the following which will directly affect our garments and other textile sector.
• Exemption of customs duties on import of raw material by manufacturers of buttons.
• Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.
• Enhancing scope of concessions available to Special Economic Zones.
