PAKISTAN: Import Duty and Tax Abolished on Export Inputs
26 July 2021
Imported raw materials and other items for use in the manufacture of exportable goods are to be tax and duty free. The move was announced by the Federal Board of Revenue (FBR) and is due to take effect as of 14 August this year. It is envisaged that this new scheme – EFS-2021– will supersede existing programmes over the next two years.
In more specific terms, the exemptions will apply to raw materials, spare parts, components, equipment, plant and machinery. In line with this, no duty or taxes will be levied on inputs imported by authorised users, while local supplies of inputs will also be zero-rated. At the same time, the utilisation period for such inputs has been extended from two years to a maximum of five.
All EFS-2021-related procedures can be accessed online via the WeBOC and PSW digital platforms, with documentation requirements said to have been kept to a minimum in order to encourage widespread uptake.
- Other Asian Countries