duty and its opportunities in Pakistan
Import duty is a tax received on imports
and some exports by the customs authorities of a country. It is usually based
on the value of the goods that are imported. The main purpose of imposing duty
in Pakistan is to maintain the level of exports and imports. When the economy wants to reduce its imports then it
increase this duty and when the economy wants to increase the imports then it
may reduce this duty.in other words custom duty is a kind of indirect tax which
is realized on goods of foreign trade .it is categorized into import duty and
exports duty imposed upon import and exports .it is imposed on all or any of
the goods specified at a rate not exceeding on hundred per cent of the value of
goods .this duty is imposed on the goods at their import or export. Currently
Pakistan face a trade deficit now the government of Pakistan increase this
duty. In a bid to contain the ballooning bill of
imported goods, the federal government has enhanced by up to 350% the
regulatory duties on 356 essential and luxury items. However, there are slim
chances that the move will have any meaningful impact on the import bill. For
the first time in last many years, government has also imposed regulatory
duties on all types of imported cars, including the hybrid vehicles.
Of the 350tariff lines, 130 have been
targeted for the first time while rates on 223 items, which were already
subject to high regulatory duties, have been further jacked up, according to a
notification. These regulatory duties
are in addition to up to 20% custom duties rates that the federal government
charges on their imports.
The government has issued a big list of 731
items. There was no change in the regulatory duty rates of 375 items.
The goods like sunglasses and wrist watches
have also been brought under the regulatory regime for the first time. The baby
wipes have been slapped with 30% regulatory duties for the first time.
As many tariff duty of imported dairy,
vegetable and fruit products have been targeted to contain the import bill.
The country booked $12 billion current
account deficit in the last fiscal year due to a historical ever trade deficit
of $32billion. The high deficit was because of sharp increase in imports and
constant decline in exports that had plunged to $19.7 billion in the last
However according to international agencies
is of the view that such administrative measures would not yield the desired results
and the government may have to review its import policies.
The government increased the regulatory duties
on dairy products up to 155%. The products like yogurt, butter, cheese, curd
and honey have been targeted with the additional regulatory duties, going up to
32% of the import value. As many as 206 vegetables and fruits have also been
effected with up to 340% increase in their existing duties rates.
government also brought drastic changes in duty structure of all types of
vehicles and targeted 55 tariff lines with up to 100% additional duties. It has
imposed 15% regulatory duty on new cars of up to 1800cc including the hybrid
vehicles.in result of increasing regulatory duty the following sectors are
Ø Importers of foreign cars
Ø Marble industry
Ø Mobile industry
industries and many other effect in the result of this decision but on the
other hand it generates a great business opportunities for the citizens of
Pakistan. In following fields it generates the business opportunities.
ü Local automobile industry
ü Local marble industry
ü Increase the demand of local goods
ü Local ordance factories
ü Local beverage industry
ü Electronics industry
Local automobile industry
the govt increase the import duty on imported cars .this decision create a lot
of opportunities in local cars industry. When the imported cars do not come in
the economy the local industry boost into upper level. And finally the
production of local cars. And other automobile products increase this things create
a lot of opportunities for the people of Pakistan. The big guns of automobile
industry have increased their sale like Suzuki has an increase of 15% in their
sale of cars in result of this decision. The Faw another local automobile
industry in Pakistan has also increase its sale by 12%.so we can say that when
these sectors increase their production the job opportunities for people also
increased.ultimatley the unemployment rate fall.
Local marble industry
When the government has increased the
regulatory duty on imported tiles .it create the large number of opportunities
in the marble industry of Pakistan. The production of local marble has increased
the local marble companies produce more products to fulfill the needs of
customers in Pakistan. The big companies in Pakistan of marble like master
tiles emoco tiles have great opportunity to generate more profit .thus the sale
of master tile increased by20% in current fiscal year. And also emoco tiles has
also increased their sale by 33%.the decision of increasing in regulatory duty
create many business opportunities in Pakistan and reduces unemployment.
Increased the demand of local goods
This decision also create great opportunities
for local companies who produce goods and services for the citizens of Pakistan.
The local dairy products have increased their demand in Pakistan .when the
imported goods do not come in Pakistan the local goods producers find this
thing healthy for their business hence they increase the production of their
goods which also create job opportunities for a common man and lab our force get more jobs in this sector
Ordnance industry Local
This decision also effect the weapon industry
because when the imported weapons do not come into the economy this encourage
the local armed factories to produce more weapons to fulfill the needs of country.
And when the weapons industry increase their production the people find more
jobs in this sector. Ultimately the unemployment reduces.
Local beverage industry
The decision of increased in regulatory duty
on eatable goods also decreased the supply of imported eatable goods. Thus the
local beverage industry has boost up and increase its production. The local
beverage companies like government, Sufi and many others companies increase
their production. The gourment cola sale boost from its total sale of 120000000
bottles to 130000000 bottles annually.so, the career opportunities for citizens
in these companies have increased a lot.
On increasing the duty on electronic products
the supply of foreign electronic products has gone to low level. The local
electronics companies find this thing a better chance to improve their position
so the local companies ultimately increase their production of these goods .the
big electronics companies in Pakistan like Haier pel dawlance are producing
more goods to fulfill the needs of people of Pakistan. And when these companies
increase their production volume the job opportunities will also increase .and
people find more jobs thus the rate of unemployment will be at lower level.
If we conclude our topic of discussion we find
one thing that when the government increase regulatory duty on imported goods
.the supply of these goods have gone into a decline position and ultimately
their supply in local market also decrease. This create an golden opportunity
for local companies to produce more goods and services to fulfill the needs of
people.in short when increasing duty decline the supply of foreign goods in
Pakistan it also increase the business opportunities for local industries and
common people.so we can say that it is harmful in some extend bunt not so much
worst thing because it also generates livelihood for jobless people.