ISLAMABAD: Minister for Finance, Revenue and Economic Affairs Dr Miftah Ismail on Friday said that the government has proposed to enhance federal excise duty (FED) on locally produced cigarettes in respect of tier-1, tier-2 and tier-3 to Rs 3964, Rs 1770 and Rs 848 per thousand cigarettes respectively.
In budget speech at National Assembly, the minister said in order to provide relief for cancer treatment in Pakistan, the government has exempted drugs from customs duties at import stage, however the sole exception was Tasigna on which customs duty at rate of five percent is proposed to be withdrawn.
He said that it is also proposed that the rate of customs duty at rate of 11 percent on corrective eyesight glasses be reduced to three percent.
The minister said that the import of machinery and equipment is allowed duty free to charitable institutions and hospital, under the provision of Pakistan Customs Tariff code 9917. However there is no mechanism for their disposal. He added to redress this issue, it is being proposed that if such goods are disposed of within a period of seven years of their import, the payment of duty and taxes leviable thereon shall be on payment of duty and taxes assessed at time of disposal whereas if disposal is after seven years no taxes would be payable.
Miftah Ismail said that to tackle the problem of physical and mental stunting in children a food fortification program in collaboration with international partners is underway. Under this program, flour mills will mix critical micronutrients like folic acid, vitamin B12, Zinc etc in the flour being produced for sale to general public. However to ensure that the appropriate quantities of such micronutrients are being added to the flour, it is being proposed that three percent customs duty on import of the micro feeder equipment be withdrawn.
Published in Daily Times, April 28th 2018.
