Pakistan plans to significantly reduce import tariffs in the next five years as part of its National Tariffs Policy 2025-30 in an attempt to boost industrial growth and exports through a more competitive commercial regime.
According to the plan, it will begin in the fiscal budget by 2025-26, the country will cut the number of customs service slabs from five to four, with the maximum reduced rate gradually to 15% of the current 20%.
The current 3% slab will be eliminated and reassigned to zero or 5%, while the slabs of 11% and 16% will be checked to 10% and 15%, respectively.
According to a statement issued by the Engineering Development Board on Saturday, additional customs duties (ACD) will be gradually eliminated for four years, while regulatory duties (RD) and the fifth schedule of the Customs Law, which cover capital goods and industrial raw materials, will be eliminated within five years.
The policy review is aligned with the directive of Prime Minister Shehbaz Sharif to follow the growth led by export simplifying the tariff structure and eliminating distortions that hinder industrial competitiveness, said the statement.
The interested parties of the industry have been invited to provide comments on the proposed reforms and evaluate their probable impact on economic expansion and export performance.
One of the two online consultations chaired by the senior officials of the Ministry of Industries and Production is scheduled for today (May 20).
