ISLAMABAD: The government has decided to slash the customs tariff slabs to five from six in the Federal Budget 2015-16, said Commerce Minister Khurram Dastagir Khan on Wednesday at a news conference.
The tariff rationalisation is part of the commitment held out to the Geneva-based World Trade Organisation (WTO) during the Pakistan’s Trade Policy review.
Currently, the customs tariff slabs are 1, 5, 10, 15, 20 and maximum 25 per cent, respectively.
The government reduced the customs tariff slabs from seven to six in budget 2014-15.
The minister was accompanied by Secretary Commerce Shahzad Arbab and Member Customs Nisar Khan.
Nisar Khan said that maximum slabs will be reduced to four in the budget of 2016-17.
He said a committee is working on the phasing out of SROs in the upcoming budget and added that an auto policy will be soon approved.
To a question, the member said that regulatory duty is imposed to reduce the impact of falling international prices on duty collection.
On the occasion, the commerce minister said that free trade agreements (FTA) were not negotiated skilfully in the past and reciprocal market access was not granted in key sectors.
The present government intends to review the agreements, he said.
“We took a clear stand on this issue and China agreed to offer us market access under the FTA,” the minister remarked.
The minister said that WTO member countries acknowledged the resilience of Pakistani economy despite many challenges.
Secretary Commerce Muhammad Shahzad Arbab, who led the Pakistan delegation during the Trade Policy Review held in Geneva on March 24, said that trade policy review acts as a catalyst for change, invites greater openness and transparency in trade policy information, as well as an impetus for Pakistan to move forward in its reform process.
He said that Pakistan has submitted a detailed report to the WTO Secretariat and it was appreciated.
In response to a question, the commerce minister said that the next strategic trade policy framework will be a doable document.
“We will come up with a document which will be implemented,” the minister said while referring to the previous one which was not implemented because of lack of funding.
The minister said that exports to EU increased owing to GSP plus scheme. However, he did not explain why the overall exports witnessed negative growth during the first eight months of the current fiscal year.
