Govt Is Comparing Import Duties Incorrectly

Pakistan's national tariff policy is facing questions over its claim that the country has higher import duties than regional economies, with industrialist Amir Ullah Wala arguing that the administration employed different measures to compare tariff rates throughout countries.

Key points

• A Commerce Ministry spokesperson remarked the 18.54 percent figure represents Pakistan's overall average import duties.
• Manzoor Ahmad, a member of the Tariff Policy Board, remarked the figures presented by Wala and Athar were both valid within their respective contexts.
• According to She, pakistan's 18.5 percent rate did not include other import-stage taxes, such as sales tax and withholding tax.
• The Commerce Ministry remarked the WTO uses information provided by individual countries when determining tariff rates.
• Wala argued that including different types of duties only in Pakistan's figures makes the regional comparison uneven.

While the figures applied for India, Bangladesh and other regional economies rely only on customs duties, speaking at the 39th international conference and annual session of the Pakistan Society of Development Economists, Wala stated Pakistan's documented tariff rate of 18.54 percent includes further customs duties and regulatory duties.

According to World Trade Organization data, Pakistan's simple average applied customs tariff was 10.3 percent in 2023, compared with 17 percent in India and 14.1 percent in Bangladesh, he remarked. Govt Delays Cost Pakistan $132 Billion.

Wala argued that including different types of duties only in Pakistan's figures makes the regional comparison uneven. The government's national tariff policy cites Pakistan's 18.54 percent rate, comprising a 10.3 percent customs duty, a 3.65 percent extra customs duty and a 4.57 percent regulatory duty.

Meanwhile, a Commerce Ministry spokesperson remarked the 18.54 percent figure represents Pakistan's overall average import duties. Although interpretations of the term and its application vary, the spokesperson continued that the WTO does not include para-tariffs when calculating tisimple average tariff rates in its tariff profile reports.

Dr. Rubina Athar, a former chairperson of the National Tariff Commission who was involved in preparing the tariff policy, remarked the definitions of duties employed for Pakistan and other countries were not uniform. According to She, pakistan's 18.5 percent rate did not include other import-stage taxes, such as sales tax and withholding tax. Govt to Announce Fair Wheat Rates Shortly.

Dr. Manzoor Ahmad, a member of the Tariff Policy Board, remarked the figures presented by Wala and Athar were both valid within their respective contexts.

Under the national tariff policy, Pakistan intends to reduce its import duty rate from 20.1 percent to 9.7 percent by 2030, with the goal of cutting import protection by concerning 52 percent. The plan has triggered concern among industrial groups.

Wala argued that Pakistan's subdued export performance cannot be attributed solely to high import tariffs. He cited security and geographic challenges, limited access to African, Central Asian and South American markets, high electricity costs, elevated interest rates and higher taxes in the region as other factors affecting exports.

Meanwhile, the Commerce Ministry remarked the WTO uses information provided by individual countries when determining tariff rates. Stay Connected with ProPakistani.

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Taken together, the developments around govt Is Comparing Import Duties Incorrectly point to a situation that is still moving, and the coming days should bring more clarity.