Govt prepares draft for ‘National Tariff Policy’
ISLAMABAD: The government has prepared draft for ‘National Tariff Policy’ to simplify existing tariff structure for enhancing economic activity with the focus on exports.
The policy has been drafted by Commerce Division and National Tariff Commission to facilitate local manufacturers, including Small and Medium Enterprises.
The draft National Tariff Policy recommends to gradually reduce duty on raw materials and machinery for export-oriented industries. The tariff slabs are proposed to be re-fixed at 5 per cent, 10 per cent, 15 per cent and 20 per cent.
The objective of the draft policy is to simplify and rationalize the existing tariff structure for enhancing the efficiency of existing domestic activities, especially in manufacturing sector and simultaneously, to ensure predictability and transparency.
The policy also proposes to provide time-bound protection to the nascent industries.
The National Tariff Policy recommendations will be implemented in a period of five years starting from the Budget 2018-19.
The policy also suggests the elimination of difference in the rates of tariff for the commercial importers and the industrial users of raw materials, intermediate goods and machinery to reduce the cost of production for SMEs.