ISLAMABAD, Aug 8: The government has allowed a preferential duty of five per cent on import of machinery, equipment and other items required for setting up and expansion of three-star and above hotels. The decision among others was taken through a customs notification by amending the budgetary SRO575 of 2005 issued on Monday. Earlier, the preferential duty was allowed to four-star and above hotels.

According to the notification, the facility would be available following the fulfilment of the conditions — the ministry of tourism shall approve the item-wise requirement of every project on the format prescribed as Annex-B.

An authorized officer of the ministry shall furnish all relevant information online to the Pakistan Customs Computerized System (PACCS) against a specific user ID and password obtained under section 155D of the Customs Act, 1969.

Similarly, to avoid misuse of items and equipment imported by the hotel industry at concessional duty rates, the ministry of tourism shall also ensure that these items and equipment are imported in relation to an approved room capacity and are installed in the same hotel project and not elsewhere.