June 12, 2008	Thursday	Jamadi-us-Sani 07, 1429

ISLAMABAD, June 11: The government has rationalised customs duty on raw materials to promote and attract investment in various sectors.

Through the Finance Ordinance 2008, the government has rationalised duty at the rate of zero per cent, five per cent and 10 per cent on inputs used by the local industry producing water dispensers, hooks and dyes, aluminum alloy, electric irons, mini-choppers, vacuum cleaners, central heating gas boilers, mini-ovens, gas heaters, gas stoves/cooking ranges with ovens, air-handling equipment, central heating equipment, UPS, chlorinated paraffin, chrysotile cement pipes, sheets and fittings and perforated steel products.

The government allowed five per cent duty on specified active ingredients, chemicals and packing material of pharmaceutical industry, exempted duty on bitumen, JP4 and JP8, duty rate on base oil for lubricating oils reduced from 20 to 10 per cent.

Rice seeds, energy saving lamps, dredgers, specified solar energy equipment have been exempted from customs duty.

Reduction of duty has been made on calcium carbide from 15 to five per cent, PTA from 15 to 7.5 pc, PSF 6.5 to 4.5pc, caustic soda from Rs5000/MT to Rs4000/MT, printing screens from 15pc to 10pc, nickel not alloyed from 5pc to 0pc, textile buckram from 25pc to 10pc.

Manufacturers have been allowed to import samples duty free as per specified conditions in chapter 99 of PCT. Seized/confiscated vehicles as on May 31, 2008 may be released against payment of leviable duty/taxes and 30 pc redemption fine.

Manufacturers, particularly soap manufacturers, based in AJ&K, have been extended concessionary duty regime in line with SRO 565(I)/2006, as available to Pakistan-based manufacturers.

Specified industries/projects have been de-linked from the local manufacturing condition for import of required machinery, equipment and raw materials etc.

Tariff based system (TBS) for auto sector has further been improved and release of held up indemnity bonds is eased out.

The sales tax refund to foreign nationals visiting Pakistan on trade fairs on reciprocal basis has been allowed and general amnesty has been allowed from payment of past liability to persons opting to get themselves registered under the Sales Tax Act, 1990.