Tax Relief

Pakistani authorities proposes finances tax breaks to stimulate industrial progress

The latest budget, presented by the Pakistani government last week, aims to cut input costs for several industries and bring online transactions below the VAT net. It offers tariff, sales tax, and income tax relief for the industrial sector amid a proposed plan that explains how the government intends to achieve the Rs 1.129 billion increase in the Federal Board of Revenue (FBR) target.

The government has either reduced or completely exempted tariffs, additional tariffs and government levies on imports of 584 tariff lines, including fabric, in the textile sector’s value chain. The estimated loss of revenue from this important measure is Rs 10 billion.

According to Pakistani media reports, the tariff committee has proposed a reduction in tariffs and additional tariffs for 328 tariff lines for raw materials, chemicals and intermediates for the chemical, machine and leather industries, etc. as part of its tariff rationalization plan.

241 tariff lines are completely exempt from duties and additional duties, while these have been reduced from 16% or 11% to 3% for 87 tariff lines.

The additional tariff was reduced from 7 percent to 6 percent on 2,436 tariff lines. These items fall under the 20 percent inch board, which includes clothing and shoes.

Fibre2Fashion Newsroom (DS)

Pakistan’s latest budget aims to reduce input costs for many industries and bring online transactions below the VAT net. It offers tariff, sales tax, and income tax relief for the industrial sector amid a proposed plan that explains how the government intends to achieve the Rs 1.129 billion increase in the Federal Board of Revenue’s target.

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