Federal Cabinet Approves Gradual Reduction in Regulatory Duty
November 20, 2019
| Federal Cabinet Approves Gradual Reduction in Regulatory Duty |
Islamabad: Federal Cabinet for the first time approved a gradual reduction in regulatory duty and additional customs duty under the National Tariff Policy (NTP).
The Federal Cabinet, in its meeting chaired by the Prime Minister on Tuesday, November 19, 2019, approved the National Tariff Policy (NTP) for the first time.
The policy guidelines contained in the NTP, as approved by the Cabinet, provide that price slabs will be eased according to the principle of the clash. The tariffs on raw materials, intermediate and capital goods will be gradually reduced. Additional customs duties and regulatory duties will be gradually reduced. To provide a level playing field for SMEs through competitive access to essential raw materials, the difference in the tariff rates for commercial importers and industrial users of raw materials, intermediate and capital goods will be eliminated. Innovative industry will be protected in a timely manner, which will meet the payment period.
This policy, developed after extensive consultation with stakeholders, identified a milestone in the pattern of national economic policy, recognizing the importance of employing import tariffs to increase industrial development and exports. ۔
The Prime Minister said in his remarks during a Cabinet meeting that import tariffs have traditionally been used as a means of generating revenue, which has increased the dependence on import duties to collect the taxes. According to the government’s reform agenda, the example of economic policy is now being prepared to exploit tariffs for industrial development.
The purpose of the national tariff policy is to remove the imbalances in tariff structures and promote trade policy priorities and competitiveness through duty-free access to imported raw materials, and to promote investment in efficient industries through predictable tariff structures. Have to give An on-premises mechanism.
The NTP (ii) is based on the principle of employing revenue as a tool of trade policy rather than the production of revenues; (ii) the casketing tariff structure (increasing the tariffs with the stages of manufacture of a product), ( iii) timely ‘strategic protection’ of the domestic industry during the childhood phase of supply, and (iv) promoting competitive alternatives through timely protection, thereby ultimately making the industry competitive for export-oriented production. Will
The tariff policy board (TP), chaired by the Minister of Commerce / Advisor, along with the Minister for Commerce / Advisor, Secretary Finance, Secretary Tax, Chairman FBR, Secretary Trade, Secretary Investment Board, and Chairman NTC, will implement this policy. B)
A tariff policy center will be set up in the Ministry of Commerce, which will act as the secretariat of the TPB.
Trade advisor, Abdul Razzaq Daud, said that the NTP is marking a turning point in the country’s economic policymaking as it will increase exports, accelerate industrialization and import alternatives through the tariff framework forecast.