Federal Minister for Finance and income Miftah Ismail on Thursday said that government decided to lift the ban on import of all products, a restriction that was introduced to control churn of dollars and arrest massiveness of the rupee decline in value. However, he added what regulatory duty will be imposed in in such a way that these goods do not enter Pakistan ready-made.
“Because this requirement of in international communitywe will remove the ban on all imports,” Miftah said, speaking at a press conference with the coordinator in front of the prime minister. on economyBilal Azhar Kayani and Prime Minister’s Coordinator on Trade and Industry, Rana Ihsan Afzal, in Islamabad.
“Nonetheless government will impose such regulatory duties (RD) that these goods will not enter Pakistan ready-made. We will impose maximum admissible regulatory duty.
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“Regulatory duty may be in in range of 400-600% or even higher for some industries, as the country does not have enough dollars, and government will give priority purchase of wheat, edible oil, cotton over smartphones and cars,” he said.
Mifta said heavy duty and sales tax rates will be introduced on import of CBU (fully built up units), including cars, mobile phones and other luxury items like imported meat, shoes, wallets.
“That would allow the import needs to be saved. Our goal is not to allow import of insignificant items.
“Our goal is to comply with agreements made with International Monetary Fund (IMF) and others international organizations, including the World Trade Organization, while maintaining import figures in check,” he said, adding that government supported the ban for three months, but some items could still be found in local market.
“This way we will allow items pass through the green channel, and increase our income.
“Secondly, we have fulfilled with issues related to electricity tariffs. We will not give any unfunded subsidies, in in order to meet the primary surplus target of 153 billion rupees.”
No import ban on sanitary pads or diapers, says Miftah Ismail
Myth added what government revised its retail tax target to Rs 27 billion from its previous target. of 42 billion rupees.
“We will introduce a decree according to which fixed tax on the retail sector will be removed, but variable tax, including a 5% sales tax and a 7.5% income tax, will remain in place for next three months on all retailers”, he said, adding that it remain for retailers consumes 0-50 units and will increase in parts.
“This will be implemented from October 1st,” he said.
Taxation on cigarettes and tobacco
minister said that government would impose taxes on the melody of 36 billion rupees on tobacco and cigarettes.
“Tax of Collected Rs 1850 on cigarettes will now cost Rs 2,050 and Rs 5,900 will be charged. on Tier 1 cigarettes will be increased to Rs 6500.
“Green leaves, which had previously been reduced from Rs 300 to Rs 10 by the previous government, has been increased to Rs 380”.
IMF program
Meanwhile, on start of press conference, finance minister said Pakistan has met all previous activities of IMF ahead of The Executive Board should meet on August 29th.
“The IMF reported us what is the funding gap of 4 billion dollars. it wanted us increase our foreign exchange reserves by $6.5 billion. Luckily we have met $4 billion in funding thanks to three friendly countries,” he said.
“China offered help and said us that they will transfer $2 billion. Similarly, Saudi Arabia stated that they over upcoming loans. Pakistan’s need for funding was met.”
