Latest news with #ACDs
Business Recorder
2 days ago
- Business
- Business Recorder
PM Shehbaz directs for early finalization of national industrial policy
Prime Minister Muhammad Shehbaz Sharif on Thursday directed for early finalization of national industrial policy in consultation with all stakeholders for lasting solution of problems faced by industries and accelerating industrial growth, according to Radio Pakistan. Chairing a high level meeting in Islamabad, he said development of domestic industries is inevitable for export-led economic growth. Pakistan reveals National Tariff Policy draft, aims to eliminate RDs, ACDs in 5 years The Prime Minister said equipping the industries with international standard manpower and technology is the government's top priority. He said recent economic policies have been devised with the aim to give a boost to domestic industries. He mentioned the tariff rationalization policy, and said it will promote investment in the country. During the meeting, recommendations were presented for development of domestic industries. It was informed that the country's manufacturing sector will be revived through an effective industrial policy. In a related development earlier, the federal government unveiled the draft for the National Tariff Policy (NTP) 2025–30 at the Regulatory Reforms Conference on Wednesday. The conference, organised by the Board of Investment (BoI), aimed at advancing regulatory simplification and industrial competitiveness, bringing together federal ministers, diplomats, and private sector representatives for a strategic dialogue on Pakistan's economic direction. 'The National Tariff Policy 2025–30 is designed to create a predictable, transparent, and investment-friendly tariff structure,' said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, read a statement released by the Ministry of Commerce. The NTP 2025–30 outlines ambitious reform goals, including the phasing out of ACDs in four years, elimination of RDs and the 5th Schedule within five years, and the establishment of a simplified four-slab Customs Duty structure (0%, 5%, 10%, 15%).
Business Recorder
3 days ago
- Business
- Business Recorder
National Tariff Policy draft 2025-30 unveiled
ISLAMABAD: The Government of Pakistan unveiled the draft National Tariff Policy (NTP) 2025-30 during the National Regulatory Reforms Conference organised by the Board of Investment (BoI). The conference, aimed at advancing regulatory simplification and industrial competitiveness, brought together federal ministers, diplomats, and private sector representatives for a strategic dialogue on Pakistan's economic direction. Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, represented the Ministry of Commerce and delivered the keynote address on the minister's behalf. In his speech, Afzal underscored the government's strong commitment to rationalising Pakistan's tariff regime, simplifying business processes, and fostering export-led growth. He stated, 'The National Tariff Policy 2025-30 is designed to create a predictable, transparent, and investment-friendly tariff structure. By facilitating duty-free access to raw materials, phasing out Additional Customs Duties (ACDs) and Regulatory Duties (RDs), and supporting nascent and green industries, this policy paves the way for innovation, employment generation, and sustained economic growth.' The NTP 2025-30 outlined ambitious reform goals, including the phasing out of ACDs in four years, elimination of RDs and the 5th Schedule within five years, and the establishment of a simplified four-slab Customs Duty structure (0%, 5%, 10%, 15%). The policy aims to benefit key sectors including textiles, engineering, pharmaceuticals, and IT, while encouraging investment and reducing production costs across the board. Rana Afzal highlighted that the implementation will begin with the reduction of tariffs on approximately 7,000 tariff lines, largely focused on raw materials and intermediate goods, yielding an estimated Rs 200 billion in benefits to trade and industry. 'These reforms will enable Pakistan's industries to scale, compete globally, and shift towards higher value-added exports,' he said. 'With these changes, we anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity, and enhanced investor confidence.' The conference was also attended by Federal Minister for the Board of Investment Qaiser Ahmed Sheikh, Special Assistant to Prime Minister on Industries and Production Haroon Akhtar Khan, senior officials, diplomats, and leading figures from the private sector. Participants lauded the government's efforts to streamline regulation and modernise trade facilitation, calling the draft policy a significant step toward Pakistan's long-term economic transformation. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Pakistan reveals National Tariff Policy draft, aims to eliminate RDs, ACDs in 5 years
The federal government has unveiled the draft for the National Tariff Policy (NTP) 2025–30 at the Regulatory Reforms Conference on Wednesday. The conference, organised by the Board of Investment (BoI), aimed at advancing regulatory simplification and industrial competitiveness, bringing together federal ministers, diplomats, and private sector representatives for a strategic dialogue on Pakistan's economic direction. 'The National Tariff Policy 2025–30 is designed to create a predictable, transparent, and investment-friendly tariff structure,' said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, read a statement released by the Ministry of Commerce. Afzal underscored the government's strong commitment to rationalising Pakistan's tariff regime, simplifying business processes, and fostering export-led growth. National Tariff Policy: govt approves phased elimination of import duties 'By facilitating duty-free access to raw materials, phasing out Additional Customs Duties (ACDs) and Regulatory Duties (RDs), and supporting nascent and green industries, this policy paves the way for innovation, employment generation, and sustained economic growth,' he added. The NTP 2025–30 outlines ambitious reform goals, including the phasing out of ACDs in four years, elimination of RDs and the 5th Schedule within five years, and the establishment of a simplified four-slab Customs Duty structure (0%, 5%, 10%, 15%). The ministry says that the policy aims to benefit key sectors, including textiles, engineering, pharmaceuticals, and IT, while encouraging investment and reducing production costs across the board. Afzal highlighted that the implementation will begin with the reduction of tariffs on approximately 7,000 tariff lines, largely focused on raw materials and intermediate goods, yielding an estimated Rs200 billion in benefits to trade and industry. 'These reforms will enable Pakistan's industries to scale, compete globally, and shift towards higher value-added exports,' he said. 'With these changes, we anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity, and enhanced investor confidence.' The conference was also attended by Federal Minister for Industries and Production Haroon Akhtar, Federal Minister for the Board of Investment Qaiser Ahmed Sheikh, senior officials, diplomats, and leading figures from the private sector.
Business Recorder
13-06-2025
- Business
- Business Recorder
Tariff cuts to cause Rs200bn revenue loss
ISLAMABAD: The tariff rationalization including changes in import duties slabs, abolition/reduction in customs duties, Additional Customs Duties (ACDs) and regulatory duties (RDs) in budget (2025-26) will result in revenue loss of Rs 200 billion in 2025-26. Break-up of revenue loss in 2025-26 revealed that the reduction in rates of ACDs would cause revenue loss of Rs 126.7 billion. Changes in RDs would cause revenue loss of Rs 57.7 billion and revision in rates of customs duties would have revenue implications of Rs 15.6 billion. The Federal Board of Revenue (FBR) has estimated to collect huge revenue of Rs 56 billion from increase in tax from profit on debt during 2025-26. Massive tariff overhaul unveiled According to the revenue impact of taxation and relief measures (federal budget 2025-26) prepared by the FBR, previously profit on debt was taxed at 15 percent as final discharge of tax liability for individuals earning less than Rs5 million. It is now proposed to increase tax rate on profit on debt from bank deposits to 20 percent to bring it closer to the effective rates on other income sources taxed at normal rates, with highest slab bearing tax rate of 35-45 percent. This tax would now be treated as 'minimum tax liability' ensuring it cannot be used to avoid standard tax obligations. Break-up of new taxation measures revealed that the FBR has estimated to collect Rs 26 billion from taxation of e-commerce/digital transactions during 2025-26. The rate of deduction for payments through digital means and cash on delivery would have positive impact on revenue collection. It is proposed to levy 1 percent of the gross amount if payment is less than Rs 10,000; 2 percent of the gross amount if payment is less than Rs 20,000 and levy 0.25 percent of the gross amount if payment is more than Rs 20,000. For cash on delivery, the tax rate will be 0.25 percent of the gross amount paid for all electronic goods; the rate will be 2 percent of the gross amount paid for supply of clothing articles and one percent of the gross amount paid on supply of goods other than electronic goods and clothing goods. According to the revenue impact of taxation and relief measures prepared by the FBR for 2025-26, the FBR will generate revenue to the tune of Rs 20 billion from imposition of sales tax on solar panels during next fiscal year. The imposition of 10 percent sales tax on erstwhile tribal areas would generate additional revenue of Rs 30 billion in 2025-26. The FBR has estimated to generate revenue of Rs 10 billion from tax on income from Coupon Washing. It has been proposed that the advance tax under section 151A shall be deducted on the profits arising from the trading of Pakistan Investment Bonds (PIBs) and T-Bills across the counters before the date of maturity. The reintroduction of tax credit for housing loan for small residences will have negative impact on FBR's tax collection during next fiscal year. Similarly, the removal of Federal Excise Duty (FED) on immovable properties will also have a negative impact on tax collection. The rationalized dividend tax rates on mutual funds would generate additional revenue of Rs7 billion in the national exchequer. The removal of less than 18 percent sales tax rate on motor vehicles would generate revenue of Rs7 billion. The 12.5 percent concessional sales tax on hybrid and less than 1800cc cars was meant to support middle-income buyers, but did not deliver the intended benefits due to maintenance of high prices by car manufacturers. Now, it is proposed to withdraw the concession, applying standard 18 percent sales tax on such vehicles. The FBR will generate Rs2 billion from tax at 5 percent rate proposed on pension income exceeding Rs10 million for individuals less than 70 years old. The increase in advance tax from 10 percent to 15 percent on fee for offshore digital services would have positive impact on revenue collection of the FBR. On the other hand, the FBR has calculated a positive revenue impact of 7-9 percent in overall tax collection considering all factors of customs tariff rationalization i.e. increased demand, economic growth, transparency, decrease in under-invoicing, smuggling, compliance cost and Global Trade Analysis Project (GTAP) calculations with increase in exports by 10-14 percent. Copyright Business Recorder, 2025
