Tariff cuts to be phased over five years

NTC says anti-dumping duty on coated paper board imposed; industry seeks cautious tariff reforms

LAHORE:

Secretary of the National Tariff Commission (NTC) Khizar Hayat said on Thursday that while customs duties are being gradually reduced under the National Tariff Policy, all legal protection mechanisms, including anti-dumping, countervailing and safeguard measures, remain available to protect domestic industry.

Speaking at a meeting organised by the Lahore Chamber of Commerce and Industry (LCCI), Hayat said preparations for the upcoming federal budget had begun and that tariff-related recommendations would be finalised after consultations with stakeholders.

According to an official statement, he said tariff reduction under the National Tariff Policy 2025-30 was a gradual five-year process, not a one-off exercise, allowing industry sufficient time to adjust. He added that the objective of eliminating additional and regulatory duties was to remove distortions, tariff anomalies and unnecessary concessions, rather than encourage imports.

Hayat informed participants that anti-dumping duties on double-sided coated bleach board had been imposed since January 7, providing relief to the local paper industry. He said the NTC had acted within the legal framework, even though some cases were under judicial review.

LCCI President Faheemur Rehman Saigol welcomed the NTC delegation and said the National Tariff Policy could support industrial growth if implemented carefully, warning that hasty tariff cuts could harm local manufacturers. He highlighted the absence of clear tariff distinctions between raw materials, semi-finished and finished goods, saying this created unfair competition and discouraged export-led growth.

He called for a sector-wise approach to tariff policy, proposing zero percent customs duty on raw materials not produced locally, while maintaining duties on finished goods for at least two years. He also urged time-bound protection for locally produced raw materials to promote value addition, while remaining compliant with IMF commitments.