The Federal Board of Revenue (FBR) has suggested imposing regulatory and extra customs charges on some imports by up to 100 percent. The action is part of the Federal Government’s aim of reducing the monthly import cost by $1 billion.
According to reports, the FBR has proposed hiking the regulatory charge and extra customs duty on automobiles larger than 1,000cc by 100% and 30%, respectively.
Furthermore, the board has suggested increasing the regulatory charge on imported tires by 100%, as well as increasing regulatory duties and extra customs duties on a variety of commodities.
Aside from automobiles and tires, significant regulation and extra customs taxes have been suggested for consumer goods, home appliances, power generation machinery, general machinery, steel products, ceramics, polypropylene, and mobile phones.
Miftah Ismail, the Federal Finance Minister, also presided over a meeting on Tuesday to discuss the FBR’s suggested steps. During the discussion, authorities informed the minister that these actions may save the government $1 billion on its monthly import cost.
The planned regulation and extra customs taxes would go into effect only once Prime Minister Shehbaz Sharif approves them. Before adopting these measures, the Federal Government would also attempt to get the support of the International Monetary Fund (IMF).