The Chairperson of the National Tariff Commission (NTC), Robina Ather, informed the Senate Standing Committee on Finance on Thursday that the government has not suffered any major revenue loss because of the tariff rationalization done in the budget (2022-23).
She informed the committee that the FBR and NTC have a consensus on the tariff rationalization for the budget (2022-23). The Federal Board of Revenue (FBR) has no objections to the NTC’s tariff rationalization done in the new budget.
Robina Ather further stated that there is no significant revenue impact on the government as a result of tariff rationalization. In a few areas, the government has imposed regulatory duties, but the amount has been compensated through other relief measures.
Chairperson NTC added that the FBR has agreed to the changes in the tariff lines at the import stage. She added that customs duties have been decreased on importing packaging materials, dyes, and combined harvesters.
FBR Member Customs (Policy) informed that the World Customs Organization (WCO) updates its Harmonized Commodity Description and Coding System (HS) after every five years to accommodate modern developments and changing trade patterns. The last HS version was updated in 2017.
The current amendments to the HS nomenclature have entered into force on 1 January 2022. Pakistan is a signatory to the HS Convention and must adopt the HS 2022 version. Since these amendments are required to be incorporated in the First Schedule to the Customs Act, 1969 (Pakistan Customs Tariff). Therefore, Pakistan adopted the same by incorporating all of its latest amendments introduced in earlier nomenclature/HS codes in the Pakistan Customs Tariff by the process of addition/deletion and creation of local PCT codes accordingly. It will be effective from 1 July 2022.