With the start of the next financial year on 1st July 2020, the Federal Board of Revenue Pakistan has started the preparation for the achievement of revenue collection target for the Fiscal year 2020-2021.
For the aforesaid fiscal year, FBR has massively increased the additional customs duty up to 7 percent with an effect from 1st July 2020.
For the purpose of levying additional customs duty at different rates of two percent, four percent, and seven percent, FBR has issued an SRO 572(I)/2020 on Tuesday.
The FBR provisionally collected Rs3.957 trillion for fiscal year 2019/2020. As per budget documents, the FBR has been assigned to collect Rs4,963 billion during the fiscal year 2020/2021, which is around 25 percent higher than the collection of fiscal year 2019/2020.
In the budget presentation, the government has declared this budget as tax-free as no tax or duty has been levied to provide relief to the masses in this pandemic.
However, as per the notification, an additional customs duty at two percent has been imposed on goods imported under tariff slabs of zero percent, three percent, and 11 percent.
Another rate of four percent additional customs duty has been levied on goods imported under tariff slab of 16 percent.
While, the rate of seven percent additional customs duty has been applied to goods imported falling under tariff slab of 20 percent or, above.
However, the edible crude oil that is subject to import at higher tariff slab, shall still be charged with an additional customs duty at the rate of two percent.
The FBR further said that additional customs duty would not be applicable to the goods imported under the concessionary regime for exporters.
Further, the additional customs duty shall also not be applicable to the contractors and services companies for offshore projects.