Luxury goods and sundry non‑essential items are among a wide range of products that have been subject to new regulatory duties as of 1 July this year. Imposed by the Federal Board of Revenue (FBR), these tariffs apply to chocolate, fresh fruit and vegetables, overseas coffee brands, soft drinks, stationery, sanitary items and a number of other products.
Full details of the new rates can be found in two Statutory Regulatory Orders (SROs) issued by the FBR on 30 June. The first, SRO 840(1)/2021, amends the regulatory duties on the import of 599 items, while the second, SRO 845(1)/2021, introduces additional customs duty of 2% on the import of certain goods falling under customs tariff bands previously rated at 0%, 3% or 11%. In addition, the FBR will also collect 4% additional customs duty on goods previously rated at 16%; 6% on goods rated at 20%; and 7% on goods rated at 30%.
There are also broad decreases in rates on 2,436 tariff lines, with duty cut from 20% to 6% or 7%. These reductions largely apply to imported raw materials used in the textile industry. In addition, importers of polyester, woven fabrics of synthetic staple fibres and artificial staple fibres, and yarn of artificial staple fibres and man‑made staple fibres will now only need to pay 2% duty.
The FBR also announced the extension of the exemption from duty on 61 imported medical devices and equipment used in the treatment of Covid-19 until 31 December this year.