The law division has endorsed the summary of levying Rs182 billion in additional taxes including Rs40 billion tax relief, an official tax notification for this development is set to be published soon.
The Federal Board of Revenue (FBR) has forwarded drafts of SROs to increase regulatory and additional customs duty to law division and seeking its endorsement, officials told Express Tribune.
In order to increase taxes, FBR doesn’t need parliament’s approval via the finance bill because FBR has the decision making power to increase customs and regulatory duties, the sources said.
According to the details in SRO, approximately 6000 items are under the radar on which customs duty would be raised from 2% to 3%, the increased duty will raise additional revenue of Rs50 billion for the FBR, the total revenue after raising additional customs duty will reach Rs130 billion from the previous figure of Rs80 billion.
The details in revised SROs indicate that regulatory duty on imported Yogurt, Milk, Honey, Butter, Whey Powder, Flour, Poultry, Dry Fruits, Aluminum, Paints, Varnish Perfumes, Lipstick, Make-up items, Shaving items, toiletries, and 1300 other items would be increased by 5%.
Moreover, regulatory duty on items such as imported kids garments, men and women shirts, tracksuits, shawls, scarfs, ties, and other related items would be raised from 5% to 10%.
Additionally, regulatory rates on live poultry, chicken margarine, varnish, sulfuric acid, paints, CTP plates, bottles, jars, cutlery, locks used in furniture would see an increase from 10% to 15%.
The regulatory duty would also be increased from 25% to 30% for the items including fish meat, flavored milk & cream, whey powder, potato chips, coconut, nuts, cereals and all kinds of nut bolt and washers.
The purpose of increasing regulatory and customs duty is to curb imports and generate more revenue for the government.