June 06, 2006	Tuesday	Jumadi-ul-Awwal 9, 1427

ISLAMABAD, June 5: The government has exempted customs duty on five sectors and introduced new Tariff Based System (TBS) for automobile sector. It has also rationalised duty on raw materials used in various sectors, restricted the age limit for import of used cars and reduced duty on heavy trucks and tractors.

Through the Finance Bill 2006, the government has exempted customs duty on import of vitamins used in the poultry feed industry besides this, duty on prefabricated buildings and disinfectants have been reduced to 5pc; special incentives introduced for development of dairy industry; inputs of horticulture and floriculture sectors exempted from customs duty; duty on inputs of fish farming reduced to lessen the cost of fish farming and import of agriculture tractors exempted from customs duty to optimise the output of the agriculture sector.

The TBS system, to be effective from July 1 2006, has been introduced which would replace the earlier deletion programme. The duty has been rationalised on purpose-built taxi cabs, multi axle trucks and import of old/ used cars importability in transfer of residence scheme, baggage and gift scheme (for age of car) to be restricted to five years.

To attract investment in wholesale and retail trade, exemption from customs duty in excess of 5pc on import of equipments for establishing the wholesale and retail chain stores like refrigeration system, forklift trucks, high racks, fitting, fixture etc.

For promotion of medical tourism through quality hospitals and care facilities, rates of duty reduced on the following — plant and machinery; medical, surgical, dental or veterinary machinery/equipment; fixtures, fittings, and furniture; diagnostic kits.

Duty exempted on import of all medicines for cancer; drugs used for kidney dialysis and kidney transplant; all types of vaccines for hepatitis; interferon and other medicines for hepatitis; all vaccines/anti-sera, cardiac medicine; injection anti-D immunoglobulin; bloods bags CPDA.1; all medicines for HIV; all medicines for Thalassemia; and duty on import of eye-drops and ointment medicinal reduced.

Duty rates on the following raw material inputs reduced for growth and development of the related industrial sectors: copper raw material; forging and foundry inputs; zinc, lead, refractory cement; chemicals used for tanning leather; earth colours; pharmaceutical chemicals; plastics sheets; and solutions for rubber etc; reduction of duty on raw materials, parts and components used for manufacture of fixed wireless terminals for CDMA, duty on equipment for assembly of CNG kits exempted, bicycle parts and components exempted from duty.

Duty on flat rolled steel products and articles reduced; duty on cutting tools and machine tools reduced; duty on electrical devices reduced; duty on plastic materials reduced; duty on different types of machinery reduced; duty on inorganic and organic chemicals reduced; chemicals used in textile processing industry exempted from duty; inputs of leather and leather products exempted from duty; duty on broadcasting equipment reduced.

Computer hardware and parts exempted from duty.