Govt imposes regulatory duty on import of raw materials

The Federal Revenue Board (FBR) on Monday imposed regulatory duty on all kinds of imported raw materials, including medicines.

The revenue body will collect a 10% duty tax on chloroform, and dioctyl terephthalate until December 31 and it would be increased to 20% from January 1, 2025.

The revenue board also took agriculture into the tax net, according to a fresh rule, a 5% regulatory duty was imposed on seed grading, sorting, and cleaning machines, vegetable dryers and other machines. 

Moreover, the government added a 10% duty on third-generation antibiotic levofloxacin, and a 10% on caffeine and its salts, effective from July 1.

The regulatory duty on sodium carbonate was reduced from 20% to 10%, while on chewing gum it was increased to 10%. 

However, the authority will collect a 10% regulatory duty on chloroparaffin liquid, 5% on polyurethanes on polymers, and vinyl chloride and other plastics until December 2024.

Meanwhile, the board imposed a 10% duty on iron products, non-alloy steel products, and flat-rolled, off-secondary quality iron products till December 31, and it would decrease to 5% from January 1, 2025.

According to the FBR, the importer will pay a 5% regulatory duty on cold-rolled steel strips with volumes of 0.5mm to 100mm until the middle of the ongoing FY2024-25.