ANNOUNCEMENT 03 Jun 2014

In June 2014, the government of Pakistan announced a change in import duties and a targeted tax change.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising
Inception date: 01 Jul 2014 | Removal date: 01 Jul 2015
Still in force

Tax or social insurance relief

On 3 June 2014, Pakistan Minister of Finance presented the 2014-15 Federal budget. The budget includes the following trade reated measures:
 

  •  An Export Import (EXIM) Bank will be set up to enhance export credit and reduce borrowing costs for export sectors
  • The mark-up rate on export finance will be reduced from 9.4% to 7.5%
  • Mark-up rate on long term export finance reduced from 11.4% to 9% 
  • Pakistan Land Port Authority to be established to facilitate land based trade and migration
  • Airfreight subsidy on horticulture produce from Gilgit-Baltistan
  • Reduced corporate tax for investments in industrial undertaking, construction or housing projects with at least 50% FDI
  • Tax facilitation for non-resident companies investing in Pakistan
  • Customs duty removed on plastic coversing, mulch film, anti-insect net and shade net
  • Foreign Institutional Investors will be brought under the withholding tax regime
  • Earlier imported finished goods in the textiles, leather, carpets, surgical and sports goods sector were getting benefit of reduced sales tax. This has been withdrawn
  • Several export schemes have been consolidated into an Export Facilitation Scheme 
  • The maximum custom tariff has been reduced from 30% to 25%
  • The 0% tariff slab for imports is replaced by a 1% tariff. However, import of socially sensitive items such petroleum products, fertilizers, etc. are not subject to this change
  • Customs duty exemption on imports of plant, machinery and equipment for fruit processing and other industrial units in Gilgit-Baltistan, Baluchistan and Malakand division and all industries in federal tribal areas
  • Import duty on PET coke reduced from 5% to 1%
  • Import duty exemption on high efficiency irrigation equipment and greenhouse farming equipment 
  • Reduced sales tax for local supply of tractors from 16% to 10%
  • Reduced import duty for Hybrid Electric Vehicles up to 50% for 1800 cc vehicles and 25% for those above 25%
  • Import duty on networking equipments increased from 5 to 10%
  • Fixed amounts of duty and taxes on used vehicles increased by 10%
  • Import duty on flat-rolled products of alloy steel increased from 0% to 10% and from 5% to 10%
  • Import duty levied at 5% on generators above 1100 KVA
  • Uniform import duty of 15% levied on all dyes except basic dyes and indigo blue dyes
  • Uniform import duty of 10% on all kinds of CDs/DVDs 
  • Import duty on flavouring powders increased form 10% to 20% 
  • Uniform customs rate of 10% levied on liquid paraffin and White oil
  • Import duty on dryers HS 8421 increased from 5% to 10%
  • Uniform import duty of 15% on import of starches to avoid misclassification
  • Import duty on coloring matters increased from 5% to 10%
  • Import duty on satellite mobile phones reduced from 25% to 10%

 
Additional Textile packages
 

  • Draw-backs on local taxes for exporters with increase of more than 10% on previous year exports
  • Tariff rate protection to companies in the value chain in the textile sector
  • Duty free import of machinery extended for two more years

 

AFFECTED PRODUCTS

 
270112 270119 271311 271320 320411 320412 320413 320414 320415 320416 320417 320419 320420 330210 330290 392010 392020 392030 392043 392049 392062 392063 392099 392112 392113 392119 392190 410210 410221 410390 410510 410621 410622 410719 420212 420221 420222 420229 420330 420340 500400 500500 500720 500790 510119 510130 510610 510620 520100 520511 520512 520513 520522 520523 520524 520526 520527 520528 520531 520535 520548 520819 520831 520851 520942 521039 521059 521119 521120 521142 521159 530310 530500 530710 540110 540120 540231 540233 540244 540245 540247 540249 540252 540262 540331 540332 540339 540341 540490 540710 540720 540742 540751 540752 540754 540761 540769 550130 550200 550320 550330 550410 550490 550620 550911 550912 550921 550922 550931 550932 550951 550959 550969 551011 551442 551694 560311 560312 560313 560314 560394 560500 560600 560811 560890 570242 570320 570490 580620 580632 580710 580790 581099 590190 590210 590220 590310 590320 590390 590700 591190 600129 600192 600531 600532 600632 600634 600690 610910 610990 611030 611090 611190 611693 620339 620349 620990 621210 621710 630140 630532 630533 630539 630612 630790 630900 722511 722519 722530 722540 722599 842119 842121 842123 842129 842131 842139 842191 842199 842410 842489 842490 843810 843820 843850 843860 850110 850140 850152 850153 850161 850164 851712 851761 851762 851769 851770 852349 852352 852359 852380 870120 870190 870321 870322 870323 870324 870333 870390 901812 901813 901819 901831 901832 901839 901890 950691 950699
(+ 208 more)
Inception date: 01 Jul 2014 | Removal date: 01 Jul 2015
Still in force

Import tariff

On 3 June 2014, Pakistan Minister of Finance presented the 2014-15 Federal budget. The budget includes the following trade reated measures:
 

  •  An Export Import (EXIM) Bank will be set up to enhance export credit and reduce borrowing costs for export sectors
  • The mark-up rate on export finance will be reduced from 9.4% to 7.5%
  • Mark-up rate on long term export finance reduced from 11.4% to 9% 
  • Pakistan Land Port Authority to be established to facilitate land based trade and migration
  • Airfreight subsidy on horticulture produce from Gilgit-Baltistan
  • Reduced corporate tax for investments in industrial undertaking, construction or housing projects with at least 50% FDI
  • Tax facilitation for non-resident companies investing in Pakistan
  • Customs duty removed on plastic coversing, mulch film, anti-insect net and shade net
  • Foreign Institutional Investors will be brought under the withholding tax regime
  • Earlier imported finished goods in the textiles, leather, carpets, surgical and sports goods sector were getting benefit of reduced sales tax. This has been withdrawn
  • Several export schemes have been consolidated into an Export Facilitation Scheme 
  • The maximum custom tariff has been reduced from 30% to 25%
  • The 0% tariff slab for imports is replaced by a 1% tariff. However, import of socially sensitive items such petroleum products, fertilizers, etc. are not subject to this change
  • Customs duty exemption on imports of plant, machinery and equipment for fruit processing and other industrial units in Gilgit-Baltistan, Baluchistan and Malakand division and all industries in federal tribal areas
  • Import duty on PET coke reduced from 5% to 1%
  • Import duty exemption on high efficiency irrigation equipment and greenhouse farming equipment 
  • Reduced sales tax for local supply of tractors from 16% to 10%
  • Reduced import duty for Hybrid Electric Vehicles up to 50% for 1800 cc vehicles and 25% for those above 25%
  • Import duty on networking equipments increased from 5 to 10%
  • Fixed amounts of duty and taxes on used vehicles increased by 10%
  • Import duty on flat-rolled products of alloy steel increased from 0% to 10% and from 5% to 10%
  • Import duty levied at 5% on generators above 1100 KVA
  • Uniform import duty of 15% levied on all dyes except basic dyes and indigo blue dyes
  • Uniform import duty of 10% on all kinds of CDs/DVDs 
  • Import duty on flavouring powders increased form 10% to 20% 
  • Uniform customs rate of 10% levied on liquid paraffin and White oil
  • Import duty on dryers HS 8421 increased from 5% to 10%
  • Uniform import duty of 15% on import of starches to avoid misclassification
  • Import duty on coloring matters increased from 5% to 10%
  • Import duty on satellite mobile phones reduced from 25% to 10%

 
Additional Textile packages
 

  • Draw-backs on local taxes for exporters with increase of more than 10% on previous year exports
  • Tariff rate protection to companies in the value chain in the textile sector
  • Duty free import of machinery extended for two more years

 

 
270112 270119 271311 271320 320411 320412 320413 320414 320415 320416 320417 320419 320420 330210 330290 392010 392020 392030 392043 392049 392062 392063 392099 392112 392113 392119 392190 410210 410221 410390 410510 410621 410622 410719 420212 420221 420222 420229 420330 420340 500400 500500 500720 500790 510119 510130 510610 510620 520100 520511 520512 520513 520522 520523 520524 520526 520527 520528 520531 520535 520548 520819 520831 520851 520942 521039 521059 521119 521120 521142 521159 530310 530500 530710 540110 540120 540231 540233 540244 540245 540247 540249 540252 540262 540331 540332 540339 540341 540490 540710 540720 540742 540751 540752 540754 540761 540769 550130 550200 550320 550330 550410 550490 550620 550911 550912 550921 550922 550931 550932 550951 550959 550969 551011 551442 551694 560311 560312 560313 560314 560394 560500 560600 560811 560890 570242 570320 570490 580620 580632 580710 580790 581099 590190 590210 590220 590310 590320 590390 590700 591190 600129 600192 600531 600532 600632 600634 600690 610910 610990 611030 611090 611190 611693 620339 620349 620990 621210 621710 630140 630532 630533 630539 630612 630790 630900 722511 722519 722530 722540 722599 842119 842121 842123 842129 842131 842139 842191 842199 842410 842489 842490 843810 843820 843850 843860 850110 850140 850152 850153 850161 850164 851712 851761 851762 851769 851770 852349 852352 852359 852380 870120 870190 870321 870322 870323 870324 870333 870390 901812 901813 901819 901831 901832 901839 901890 950691 950699
(+ 208 more)