The new government has granted exemptions in customs duty worth Rs. 25 billion to the pharmaceutical sector on the import of Covid-19-related items and other medical appliances, life-saving medicine, raw material, etc. for the next fiscal year (FY23).
The Federal Board of Revenue (FBR) has calculated the cost of customs duty exemptions that are being offered to the pharmaceutical sector for the next fiscal year. According to the estimate, it has granted an exemption in customs duty worth Rs. 7.48 billion on import of different items related to Covid-19 through five different SROs during the next fiscal year.
The FBR proposed customs duty exemption of Rs. 10.18 billion to pharmaceutical sector on import of Drugs (mostly Life-Saving) under the Customs Act 1969. It has also given exemption in customs duty worth Rs. 3.59 billion on import of diagnostic kits/equipment) and Rs. 1.16 billion on import of packing materials/raw materials to the pharmaceutical sector of the country for the next fiscal year.
The Board has given Rs. 1.89 billion customs duty exemption on import of Active Pharmaceutical Ingredients to the pharmaceutical sector under Customs Act 1969. The FBR has proposed for exemption in customs duty worth Rs. 753 million on import of disposables that are not manufactured locally for cardiology/cardiac surgery, neurovascular, electrophysiology, endosurgery, endoscopy, oncology, urology, and gynecology for the next fiscal year. It has also exempted customs duty worth Rs. 406 million on imports of diagnostic kits for HIV and Hepatitis.
The authorities have also exempted custom duty on the import of artificial kidneys, hemodialysis machines, hemodialyzers, A.V. fistula needles, hemodialysis fluids and powder, blood tubing tines for dialysis, reverse osmosis plants for dialysis, double lumen catheter for dialysis and catheters for renal failure. The cost of the exemption on these medical appliances and equipment has been calculated at Rs. 604 million for the next fiscal year.
FBR has also exempted customs duty on the import of raw materials for manufacturing of contraceptives in accordance with the input/output ratios determined by the Directorate of Input-Output Co-efficient Organization in the pharmaceutical sector. The cost of exemptions on these contraceptives and accessories was calculated at Rs. 85 million for the next fiscal year.
It has also exempted Rs. 205 million customs duty on import of items relating to disabled persons including wheelchairs, artificial human parts, items used for rehabilitation of blind persons, etc.
