The Federal Board of Revenue (FBR) has imposed regulatory duty (RD), ranging from 15 to 50 percent, on the import of around 379 luxury items including luxurious vehicles and mobile phones with effect from August 28, 2008. The regulatory duty shall not be levied on the items imported under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs).
In this connection, the FBR has issued a notification here on Wednesday. Sources told Business Recorder that the board has issued a statutory regulatory order (SRO) to levy additional customs duty on the import of luxury items, ranging between 15 to 50 percent.
A wide range of items has been subjected to additional customs duty to discourage their imports. The vehicles over 1801 cc to 3000 cc would be subjected to 50 percent RD. Mobile phones have been subjected to regulatory duty at the rate of Rs 250 per set and 30 percent RD has been imposed on the import of landline telephone sets.
The implementation date of the notification is August 28 whereby all luxury items specified in the notification would be subjected to regulatory duty. The RD has been imposed on existing luxury items liable to 30-35 percent customs duty and 15-20 additional new luxurious items have also been included in the list. Therefore, the existing list of the luxury items has been expanded for collection of RD.
Sources said that the idea behind levying RD is to increase the minimum slab of duty on luxurious items upto 50 percent. The notification has been uploaded in the Pakistan Customs Clearance System (PACCS) for levy of the regulatory duty on the import of luxury items as per notification. In budget 2008-2009, the board had brought massive changes in customs duty structure through new Pakistan Customs Tariff (PCT) 2008-2009.
Duty was raised (budget 2008-2009) on the import of dairy products like cheese, butter, yogurt etc, from 25 to 35 percent; fruits all sorts, 25 to 35 percent; chewing gum, chocolate etc 25 to 35 percent; processed food like macaroni, corn flakes, biscuits, potato chips, processed packed vegetables/fruit products etc 25 to 35; fruit juices, soup, ice cream etc, 25 to 35; aerated water, 25 to 35; cosmetics, 20-25 to 35; marble/granite products, 25 to 35; ceramic products, 25 to 35; electric fans, 25 to 35; air-conditioners, refrigerators, deep freezers, 25 to 35; food grinders mixers, 20 to 30 percent; hair dryers, 15 to 30; electric ovens, cooking ranges etc, 20 to 30 percent; coffee makers, toasters, microwave ovens, 25 to 35 percent; cassette players 20 to 30 percent; LCD TV/other TVs, 25 to 35 percent; furniture 25 to 35 percent; chandeliers & other lighting equipments 25 to 35 percent and duty has been raised on the import of vacuum flasks from 25 to 30 percent. Fifty percent regulatory duty has been imposed on the import of cars and jeeps 1801 cc to 3000cc; cars and jeeps above 3000cc; cars and jeeps above 2500cc and other vehicles falling at PCT heading 8703.9000.
Thirty five percent regulatory duty has been imposed on the import of groundnuts; other, including mixtures; pineapples citrus fruit; pears apricots; cherries; peaches, including nectarines; s strawberries and palm hearts.
Thirty percent regulatory duty has been imposed on the import of extract and juices of meat, fish or crustaceans, mollusks or other aquatic invertebrates; salmon; herrings; sardines, Sardinia and brisling or sprats; tunas, skipjack and bonito; mackerel; anchovies; fish maws; fish fillet; caviar and caviar substitutes crab; shrimps and prawns; lobster and other crustaceans.
Twenty five percent regulatory duty has been imposed on the import of sausages and similar products, of meat, meat offal or blood; food preparations based on these products; homogenised preparations, of liver of any animal; of turkeys; of fowls of the species gallus domesticus; hams and cuts thereof; shoulders and nuts thereof; of bovine animals.
Fifteen percent regulatory duty has been imposed on the import of yogurt; butter dairy spreads; cheese; curd; grated or powdered cheese of all kinds; processed cheese, not grated or powdered; blueveined cheeseand other these containing veins produced by Penicillium roqueforti; natural honey; betel nuts, figs; apricots; prunes; appease; cherries; pine nut (chilgoza); peaches (arroo); plums (allocha); lichis; raisins; mixtures of nuts or dried fruits of this chapter; peel of citrus fruit or melons (including watermelons) fresh, frozen, dried or provisionally preserved in brine, in sulphur water or in other preservative solutions; tiles, cubes and similar articles, whether or not rectangular, the largest surface area of which is capable of being enclosed in a square the side of which is less than 7 cm; tiles; wash basin; bath tubs ceramic; bidets ceramic; cisterns; ceramic; sink ceramic; toilet ceramic; urinals ceramic; water loser pans; dinner sets; dishes plates; tea cups and saucers; tableware and kitchenware; of porcelain or china; of porcelain or china; cooking ranges; for liquid fuel; for gas fuel or for both gas and other fuels; for liquid fuel; parts; pad locks; ceiling fan; pineapples; avocados; guavas; mangoes; mangosteens; frozen mango; mango pulp; oranges; kino(fresh); grapefruit, including pomelos; lemons (citrus limon, citrus limonum) and limes (citrus aurantifolia, citrus latifolia); fresh dried; watermelons; papaws (papayas); apples; pears and quinces; apricots; cherries; peaches, including nectarines; plums and sloes; strawberries; raspberries, blackberries; mulberries and loganberries; cranberries, bilberries and other fruits of the genus vaccinium; kiwifruit; durians; pomegranates; strawberries; raspberries, blackberries, mulberries, loganberries, black, white or red currants and gooseberries and cherries.
Twenty percent regulatory duty has been imposed on the import of potatoes; other vegetable and mixtures of vegetables; electric smoothing irons; microwave ovens; electric; electric roasters; coffee or tea makers; pocket size radio cassette players; vacuum flasks; power puffs and pads for application of cosmetics; reception apparatus for receiving satellite signals of a kind used with TV (satellite dish receivers) and liquid crystal display.
Fifteen percent RD has been imposed on the import of prepared food; sweet biscuits; pickles; olives; citrus fruits; mushrooms; bulgur wheat; mineral water; aerated waters; sweet meat; cigars, cheroots and cigarillos containing tobacco; nail polish; face powder; face and skin creams; tonic and skin food and smoking tobacco; dyes; yarn used to clean between teeth; soaps; granite; marble; contact lens solution; pedestal fan; table fan; exhaust fan; window or wall type; self contained or split type comprising of inner and outer unit whether or not imported separately; for motor cars of heading 8703 and vehicles of sub headings 8703.2113 and 8703-2193; incorporating a refrigerating unit and a value for reversal of the cooling/heat cycle (reversible heat pumps); other; incorporating a refrigerating unit; not incorporating a refrigerating unit; combined refrigerator freezers, fitted with separate external doors; compression type; freezers of the chest type, not exceeding 8001 capacity; freezers of the upright type, not exceeding 9001 capacity; other furniture (chests, cabinets, display counters, show cases and the like) for storage and display, incorporating refrigerating or freezing equipment; fully automatic machines; other machines, with built in centrifugal drier; machines, each of a dry linen capacity exceeding 10 kg.
Source: Business recorder, 28/8/2008