Import of 19 types of capital goods: FBR abolishes 15%-30% regulatory duty

 

By Sajid Chaudhry

ISLAMABAD: The Federal Board of Revenue (FBR) abolished regulatory duty ranging from 15 percent to 30 percent on import of 19 types of capital goods if imported by the investors for establishing wholesale trade centres or retail chain stores.

However, the regulatory duty would only be applicable on capital goods imported by those importers who do not intend to establish chain stores, an official explained.

This decision has been taken to facilitate the investors intending to make investment in chain stores across the country and this decision would facilitate expansion in the network of the retail chain stores operating in the country.

The Economic Coordination Committee (ECC), in its last meeting, had taken this decision keeping in view the difficulties highlighted by the Ministry of Investment.

Regulatory duty would not be applicable on the capital goods if imported for establishing wholesale or retail chain stores in terms of Sr No 17 of the SRO 575 (I)/2006, June 5, 2006, upon fulfilment of conditions mentioned therein and subject to the condition that these companies import the same for their own utilisation and not for sale.

Items that have been exempted from regulatory duty include, Pad locks 5 percent ad valorem, exhaust fan 15 percent ad valorem, other 15 percent ad valorem, window or wall type 15 percent ad valorem, self contained or split type comprising of inner and outer unit whether or not imported separately 15 percent ad valorem, other 15 percent ad valorem, incorporating a refrigerating unit and a valve for reversal of the cooling or heat cycle (reversible heat pumps) 15 percent ad valorem, other incorporating a refrigerating unit 15 percent ad valorem, not incorporating a refrigerating unit 15 percent ad valorem, combined refrigerator freezers, fitted with separate external doors 15 percent ad valorem, compression type 15 percent ad valorem, Other 15 percent ad valorem, freezers of the chest type, not exceeding 800 l capacity 15 percent ad valorem, other furniture (chests, cabinets, display counters, show cases and the like) for storage and display, incorporating refrigerating or freezing equipment 15 percent ad valorem, line telephone sets with cordless handsets 30 percent ad valorem, other apparatus combined with sound recording or reproducing apparatus 20 percent ad valorem, metal furniture of a kind used in offices 15 percent ad valorem, Other metal furniture 15 percent ad valorem, 9403.5030 other 15 percent ad valorem, chandeliers, other 15 percent ad valorem.

The federal government has already allowed investors to import on concessionary rate of 5 percent customs duty and general sales tax free import of following machinery, equipment and capital goods imported for establishing chain stores: refrigeration system, including shelves and chests, butcher equipment, preparation equipment, rotisserie equipment, preparation equipment, fishery equipment, preparation equipment, bakery equipment, preparation equipment, high racks, self service racks, round stands, trolley, wire material, customer guidance, fork lift trucks, pallet movers, advertising and decoration material, waste re-processing systems, euro pallets, merchandise security-video control system, pneumatic dispatch system, office equipment, equipment for workshop, antenna system, canteen equipment and others.

 

 

January 27, 2009