Officials stress removing anomalies in tariff structure
About 45% of the measures that cause problems for Pakistani exporters originate in the country. PHOTO: FILE
Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Thursday reiterated the government’s commitment to support the “Make in Pakistan” initiative led economic growth.
The adviser was chairing the 16th meeting of the Tariff Policy Board (TPB). In order to achieve this objective, import duties on 1,623 tariff lines, pertaining to basic raw material and intermediate goods, had been reduced to zero through the Finance Act, 2020. In continuation of this policy, additional customs duties and regulatory duties on 164 items related to textile sector, not manufactured in Pakistan, had been recently removed by the federal cabinet. The meeting members discussed different proposals, in order to move forward and remove additional customs duties on remaining raw materials not manufactured in Pakistan.
The members of TPB opined that there is an urgent need to remove anomalies in the tariff structure so that the cost of doing business could be reduced by providing cheap raw materials to the industrial sector.
This would also help to improve competitiveness of our exports vis-a vis trading partners of Pakistan. The TPB approved further working on 152 tariff lines for removal of additional customs duty. The National Tariff Commission chairperson briefed the members of TPB on progress, made so far, in conducting study of plastics sector.
The commerce adviser stressed that sectoral studies ought to be completed within the given time line so that tariffs rationalisations could be done in those sectors by taking into account the recommendations of the studies.
At the end of the meeting, the adviser remarked that in pursuance of the objectives of National Tariff Policy 2019-24, meetings of the TPB are being held on a regular basis. Prior to this policy, proposals regarding tariff rationalisations were mostly discussed at the time of budget exercise.
He further stated that as per vision of Prime Minister Imran Khan, the tariffs are being used as an instrument of trade policy so that the manufacturing sector in Pakistan could be strengthened.
Published in The Express Tribune, October 9th, 2020.
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