May 18, 2022 (MLN): In order to put off pressure from foreign exchange reserves and the stability of the exchange rate, the government is in the process to devise an import curtailment plan as per which Regulatory Duties (RDs) on the number of imported items will increase by up to 100%.
According to the proposal, the regulatory duty on cars above 1000cc will jump by 100% while additional custom duty will stand at 30%.
Meanwhile, the RD on imported tyres and home appliances will be increased by up to 50% while the importers of machinery will be slapped by 10%.
The RD for Power generation machinery, steel products, and ceramics may go up by 30%, 10%, and 40%.
Mobile phone importers would have to pay double amounts in terms of RD as Rs 6,000 to 44,000 per unit duty has been proposed on mobile phones.
To note, the authorities have excluded energy, food, and export-oriented sectors from the proposed plan to dodge any negative impact.
At present, the regulatory duty on the import of tyres, home appliances, power generation machinery, steel (CRC), cars (above 1800cc) and ceramic stood at 20%, 20%, 10%, 5%, 70%, and 30% while mobile phone importers pay Rs3,000-Rs22,000 in terms of the said duty.
As per the latest data available at the Pakistan Bureau of Statistics (PBS), the government paid $1.3 billion in 10MFY22 against the import of power generation machines. While, in the same period, $2.3bn, $1.8bn, $625mn, and $109mn were being paid for the import of iron and steel, mobile phones, ceramics, and rubber & tyres, respectively.
