Federal govt lifts ban on import of luxury items

ISLAMABAD: The federal government has lifted the ban on the import of non-essential and luxury items, three months after the restriction was imposed, ARY News reported on Monday.

Addressing a press conference, Finance Minister Miftah Ismail announced that the federal government was lifting the ban, noting that the restrictions were imposed in line with the International Monetary Fund’s (IMF) demands.

The finance minister said that the government’s top priority was to provide basic necessities to the population as the country had a limited amount of dollars.

“We had to choose between importing cars and wheat. Therefore the government had imposed a ban on the import of non-essential items,” the minister added. He further said that the government was scrapping the import ban as it was a requirement of the international community.

However, Miftah said, the government would be imposing heavy regulatory duties (RDs) on these items, adding that as a result these items would not be imported as finished goods.

The minister pointed out that the heavy duties will be imposed on completely built-up (CBU) commodities — cars, mobile phones, and electronic appliances — and apart from them, the imported fish, meat, purse, and other such non-luxury items.

Miftah said the government’s purpose was not just to allow imports of such items but to comply with the IMF conditions and other international agreements while also keeping the current account deficit in check.

Speaking about the retail tax, Miftah Ismail said that he had taken back the tax as small shop owners were also brought under the ambit.

“Although the fixed tax will be lifted, the variable taxes — 5pc sales tax and .5pc income tax — will still be imposed on every shopkeeper for the next three months,” he added.

He further announced that the tax on cigarettes and tobacco will be double, which is an additional Rs36 billion.