The government is likely to do away with three per cent duty on raw materials imposed by the last PML-N government. An announcement in this regard is likely be made on Tuesday (today), well-informed sources told Business Recorder.
This has materialised after concerted efforts of Prime Minister”s Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood who fought the case of industry with Federal Board of Revenue (FBR), Finance Advisor Abdul Hafeez Shaikh and Prime Minister Imran Khan, the sources added.
Earlier, the FBR showed a willingness to withdraw 3 per cent duty on some categories of raw materials and lower it on some other categories.
Dawood also cautioned the concerned authorities that if the government continues to implement 3 per cent duty on raw materials, he would not be part of that decision.
According to sources, talks on five zero-rated sectors are still ongoing but most probably, these sectors will no longer be allowed to get zero rating. However, there are very bleak chances that the scheme maybe extended for another 3-6 months. The associations of five zero-rated sectors also protested in Karachi on this issue on Monday. The incentives package given to the export-oriented sector is also likely to be slashed from Rs 7 billion to Rs 5 billion.
(This news/article originally appeared in Business Recorder on June 11th, 2019)