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S. No. |
Budget 2008-09 |
EDB Remarks |
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1) |
Policy
Objectives: |
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Ø
Industrial incentives for
growth and expansion. |
Based on these
objectives EDB/MOI&P, initiated Competitiveness & Efficiency Improvement
Exercise and prepared/ finalized the Budget proposals. |
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Minimizing the cost of
doing business. |
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Ø
Cascading principle in
tariff rates maintained as guiding principle (primary raw materials @
0%-5%, secondary/components @ 5-10% and finished goods @ 20-35%). |
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Ø
Amendments in Customs Act,
Rules and Procedures for further simplification. |
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Automotive sector |
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Ø
Levy of 5% FED on the
import and local supply of
locally manufactured cars having engine capacity exceeding 850cc. (An
amendment in Table-I of First Schedule to the Federal Excise Act, 2005,
e.f. 1st July,
2008.) |
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Ø
Fully dedicated CNG buses
exempted of from duty. |
EDB recommended for maintaing the existing Duty |
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A uniform rate of 30%
specified for import of special purpose motor vehicles. |
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Increase in duty rates on
import of cars/jeeps above 1800cc from 90% to 100%. |
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Ø
Fixed duty/tax rates on
old and used cars/jeeps increased by 10%. |
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Ø
Seized/confiscated
vehicles as on 31st May,
2008 may be released against payment of leviable duty/taxes and 30%
redemption fine. |
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Ø
The rates of advance tax,
collected at the time of renewal of registration of private motor cars,
are proposed to be rationalized by making about 30% to 40% Increase in
WHT rates. |
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Ø
From the next financial
year WHT on purchase of locally manufactured motor car or jeep is
proposed to be collected by a motor vehicle registration authority at
fixed rates depending on the engine capacity. |
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Ø
Tariff based system (TBS)
for auto sector has further been improved to reduce 146 Tariff Lines. |
EDB took
comprehensive exercise to reduce these tariff lines. |
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i)
CBU
Motorcycles (87.11) from 80% to 70% |
As per 5-year Tariff
Plan of AIDP |
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ii)
CKD
Kits Motorcycles (SRO 655) from 25% to 20% |
As per 5-year Tariff
Plan of AIDP |
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iii)
Additional Duty Motorcycles (SRO 693) from 25% to 30% |
As per 5-year Tariff
Plan of AIDP |
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iv)
Regulator Rectifier for Motorcycles (8711.1910) from 25% to 50%. |
As per 5-year Tariff
Plan of AIDP |
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v)
Ignition Coil for Motorcycles (8511.3010) from 25% to 50%. |
As per 5-year Tariff
Plan of AIDP |
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vi)
CKD
Kits Cars (SRO 655) from 35% to 32.5% |
As per 5-year
Tariff Plan of AIDP |
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vii)
Additional Duty Cars (SRO 693) 15% to 17.5% |
As per 5-year Tariff
Plan of AIDP |
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Others |
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2) |
Relief Measures: |
EDB Recommended CD
for local manufacturing of these goods and are agreed by FBR. |
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Ø
Duty on
inputs of local industry producing the following goods has been reduced
to 0%, 5% and 10% rates of duty from existing 5%, 10%, 15%, 20% & 25%. |
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·
Water
Dispensers, |
RM
5% & SC/C.10% |
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Hooks &
Eyes, |
RM
0% |
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Aluminum alloy |
RM
0% |
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Electric irons, |
Comp. 10% |
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Mini
choppers, |
Comp. 10% |
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Vacuum
cleaners, |
Comp. 10% |
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Central
heating gas boilers, |
Comp. 10% |
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Mini
ovens, |
Comp. 10% |
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Gas
heaters, |
Comp. 10% |
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Gas
stoves/cooking ranges with ovens, |
Comp. 10% |
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Airport
handling equipments, |
RM/SC/Comp.
5% |
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Central
heating equipments, |
CKD Kit 5% |
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UPS,
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CKD 5% |
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Chlorinated paraffin, |
RM
5% |
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Chrysotile cement pipes, sheets & fittings |
RM
5% |
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Perforated steel products |
RM
5% |
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Industrial Evaporators & Condensers for Chilled Water Coils, Steam
Heating, Coils, Shell & Tube Type |
RM
0% & 5% |
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Auto
Disposable Syringes |
RM/Comp.
5% |
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Pigments |
RM
10% |
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Fuel
Tanks |
RM
5% & SC/Comp. 10% |
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Distilled Fatty Acid (Soya Bean Oil) |
RM
10% |
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Distilled Fatty Acid (Palm Oil) |
RM
10% |
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Distilled Fatty Acid (Coconut Oil) |
RM
10% |
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Bundle
of Heat Exchanger, Economizer / Deaerator / Storage Tanks / Silencer,
Heat Recovery Steam Generator HRSG, Water Heater / Flake. |
RM/SC/Comp.
0% |
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Conventional Machine Tools |
RM/SC/Comp. 0% |
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CD &
DVD |
RM
0% |
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Motorcycle Chains |
SC
0% |
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Ø
Addition of inputs for following existing products covered in SRO at 0%,
5% & 10% from existing 5%, 10%, 15%, 20% & 25%. |
EDB Recommended
reduction in duty and agreed by FBR. |
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Air
Conditioners |
RM 5% |
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Refrigerators/Visi Coolers |
RM 5% |
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Deep
Freezers/Chest Coolers |
RM 5% |
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Washing
Machines |
RM 5% |
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Car Air
Conditioners |
RM 5% SC/Comp. 10% |
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Evaporators and Condensers
for ACs, Deep freezers and Refrigerators |
RM 5% |
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Bolts, nuts, screws,
concrete nails and blind rivets. |
RM 5% |
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Cables and Conductors. |
RM 5% |
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CNG Dispensers. |
RM/SC/Comp.
0% |
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CNG Kits |
RM/SC/Comp.
0% |
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Diesel generating Sets |
SC/Comp. 10% |
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Electric Bulbs |
RM 5% |
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Tube Lights |
RM 5% |
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Eyelets |
RM 0% |
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Paper and Paper Board. |
RM 5% |
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Tyres & Tubes |
RM 0% |
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Viscose Staple Fiber |
RM 0% |
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Aluminum Processing
Industry |
RM 5% |
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Electric Fans |
RM 10% |
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Liquid Food Packaging
Industry for dairy and juices. |
RM 5% |
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Shoe Adhesive |
RM 0% |
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Transformers |
RM 5% SC/Comp. 10% |
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Ø
Energy saving lamps
exempted from duty |
EDB recommended for maintaing the existing Duty |
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Ø
Draggers exempted from
duty |
Supported |
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Specified solar energy
equipments exempted from duty.
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Supported, if not manufactured locally |
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Power plants imported by
WAPDA on temporary basis exempted from customs Duty. |
Supported, if not manufactured locally |
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Reduction of duty on
calcium carbide from 15% to 5%, |
EDB recommended for 20% Duty |
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Reduction of duty on PTA
from 15% TO 7.5% |
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Reduction of duty on PSF
6.5% to 4.5% |
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Reduction of duty on
Caustic soda from Rs.5000/MT to Rs.4000/MT |
EDB Agreed with proposal |
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Reduction of duty on
Printing screens from 15% to 10%, |
EDB Agreed with proposal |
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Ø
Manufacturers have been
allowed to import samples duty free as per specified conditions in
chapter 99 of PCT. |
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3) |
Revenue measures: (Detailed List is
given at Annex-I) |
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Ø
Duty rates on following
non-essential & luxury items have been increased |
This will support the local manufacturing but Smuggling should also be
controlled |
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·
Air-conditioners |
from 25% to 35% |
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Refrigerators |
from 25% to 35% |
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Deep Freezers |
from 25% to 35% |
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TV Sets |
from 25% to 35% |
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Electric Fans |
from 25% to 35% |
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Toasters |
from 25% to 35% |
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Micro wave ovens |
from 25% to 35% |
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Dairy products |
from 25% to 35% |
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Fruits |
from 25% to 35% |
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