The Federal Government has taken multiple desperate measures to stabilize the downward trend of the economy with a focused approach to minimize the balance of payments other deficits.
While presenting the Budget 2019, State Minister for Revenues Hammad Azher brought customs tariff issues in limelight. Pakistan is the highest revenue generator in the region from custom duties and import taxes.
Now, the government has decided to forego the big chunk of its revenue from this sector by exempting duty in more than 1600 tariff lines. The initiative is made to support market competition. The cost of the decreased revenue would be adjusted, with the much-expected growth of the local industries by the said decision.
– For the textile sector, duties on relevant machinery and yarn/non-woven fabrics are to be reduced
– Duty Exemption on Wood Pulp and paper scrap, while duty for different papers may reduce from 20% to 16%
– Duty in the import of wood waived off, while a decrease in the duty of wooden veneering panels from 11% to 3% to save local forests
– Duty on input parts of home appliances, printing industry and solar panels to be reduced
– 3% import duty waived off on 19 raw materials and essential items of medicines. Medicines for rare diseases are also likely to be exempted from import duty
– Duty to be exempted on Modular Operation Theaters to promote better health standards
– Simple and automated schemes for the facilitation of exporters to be implemented to promote export
Later the presentation of Budget, Prime Minister Imran addressed the nation, in line with the policies of the government and its stance on accountability. The PM said that a high-level commission with the representation of Federal Investigation Agency (FIA), Intelligence Bureau (IB), Inter-Services Intelligence (ISI), Federal Board of Revenue (FBR) and Securities and Exchange Commission of Pakistan (SECP) is to be established. The commission will investigate the unprecedented increase in the nation’s debt from Rs.6,000 billion to Rs.24,000 billion in the last years.
While commenting on the budget, he added that it will take to stabilize the economy. The damage already done cannot be cured in a day.