February 22, 2023 (MLN): The federal cabinet on Tuesday announced an extension of the regulatory duty timeframe on a variety of consumer goods by up to 100% for an additional period of 40 days. 

This decision comes as the period of regulatory duty on imported goods was set to expire on February 21, 2023.

According to the FBR, regulatory duty of up to 100% will be imposed on imported vehicles, while cigars will face an increase in regulatory duty from 20% to 50%. Box-packed food items, meat, and fruits will continue to have a regulatory duty of up to 10%.

Additionally, the FBR has announced that dry fruits, fish, and coconut will face a regulatory duty of up to 74%. This move is aimed at discouraging the import of these goods and promoting local industries.

As the State Bank of Pakistan (SBP) reviewed the restrictive import regime, which was found to be in breach of commitments made to the International Monetary Fund (IMF), the federal cabinet's decision to further extend the time period for additional duties has drawn criticism for its inconsistency in policies, discouraging investors.

The federal cabinet has circulated a summary approving the extension of additional regulatory duty and customs duty on a range of goods, including mobile phones, cars, home appliances, meat, fish, fruits, vegetables, footwear, furniture, and musical instruments, until March 31. This move comes after the cabinet's decision in August 2022, which initially stated that the higher rates had to end on February 21.

Moreover, the additional customs duty of up to 28% on cars has also been extended until the end of March. This decision is expected to have a significant impact on the country's import industry and economy.

The inconsistency in the government's policies has been a point of concern for investors, who are looking for a stable and predictable business environment in to invest in. The extension of these duties is likely to discourage foreign investment and reduce economic growth.

It remains to be seen how this decision will impact the country's economy in the long run, but it is clear that the government needs to work towards a more stable and predictable policy environment to attract investment and promote economic growth.

Copyright Mettis Link News

Posted on: 2023-02-22T09:22:24+05:00