The Federal Board of Revenue (FBR) has issued a notification to impose the regulatory duty on the import of 570 luxury items by 5 to 10 percent in a bid to promote local industry.
The Statutory Regulatory Order (STO) issued by FBR maintains that the government would levy a regulatory duty on the imports pertaining to Pakistan Customs Tariff (PCT) code of the first schedule.
As per the order, the government will impose 5 to 10 percent RD on around 80 items, which include meat, animal (alive), fish, paper, eggs, paper and paperboard, bicycles, and motorcycles.
Moreover, products including frozen fish, fish fillets, curd, cheese, fruits and nuts, tobacco, juice, and motor cars will also be subject to a regulatory duty of 5 to 10% as per the SRO.
Experts believe that the imposition of regulatory duty will help reduce the high level of imports, and also increase the revenue of FBR by Rs. 8 billion.
As per the available details, the duty levied on purebred animals will be 5 percent, concentrated milk and cream at 25 percent, and live poultry and fish-related items at 10 percent.
Moreover, the regulatory duty on whey powder will be 25 percent, with cheese and curd at 50 percent, sour cherries at 45 percent, cigarette paper at 30 percent, and on wheat and fruits juice at 60 percent.
It is pertinent to mention here that the previous government had already levied RD on 731 items in October 2017 through a notification. Again, in this May, the government imposed RD on 480 items through another notification.
Furthermore, the present government had announced via its mini-budget to end RD on 34 export-related raw material, but the Senate Standing Committee on Finance had opposed the initiative.